In a fast food store, I had $50 for my break first, whereby I considered buying sausages, which costed $4 per unit and milkshake costing $15 per unit. Let the number of the sausages to be bought to be S, and the units of milkshakes to be bought to be M, the equation can be written as $50 = $4S + $15M. The variables include the total income of $50, which was dependent variable, and the independent variables, which includes the units of milkshakes and the number of the sausages (Rassias, 2012). Therefore, the equation represents decision-making process on the amount of food products to purchase for the breakfast subject to the budget constraint of $50.
The solutions to the equation can be as follows;
$50 =$4S +$15M, if I decide to drink two cups of milkshakes, M=2
$50=$4S+$15(2), $20=$4s, S= 5.
First solution would be taking five sausages and drinking two cups of milkshakes
Alternatively, if I decide to drink one cup of milkshake, M= 1, 50 =$4S +$15(1), S=8.75. The solution for this scenario would be taking 9 sausages and one cup of milkshakes.
In business transactions, the equations are usually used in making decisions and selecting between the different options. The equations help to observe and examine the different scenarios, which would assist the business managers to make the right and most profitable decision for the businesses (Taylor, 2013). Thus, the equations are used to decide among the alternative options and making refined decisions. The examples of such business transactions include decision on the highly profitable Smartphone to sale in a retail store or comparing the cost efficient vehicles for use in the organization. The business transaction examples
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M. (Ed.). (2012). Functional equations and inequalities (Vol. 518). London, UK: Springer Science & Business Media.
Taylor, M. (2013). Partial differential equations II: Qualitative studies of linear equations (Vol. 116). London, UK: Springer Science & Business
[6] Turley Mings and Matthew Marlin, [The Study of Economics: Principles, Concepts & Applications] (Dushkin McGraw-Hill, 2000) 413-414.
c. You would have to use your own judgment or preference for candy bars and the peanuts to be able to determine what combination to buy because the budget line and the consumption alternatives does not tell you which of the available combinations to buy.
Kumar, Virender. The University of North Carolina at Chapel Hill, ProQuest, UMI Dissertations Publishing, 2001. 3007831.
This challenge consists in behavior change, starting with creating a plan based on the needs of the individual. Then, planning a variety of meals within the budget. And finally, the best prices to meet the recommended nutrient intake. One of the thing that I learned when working on this assignment was to buy the right items. When we go grocery shopping, we usually buy the most economical foods at the moment, not looking at the quantities. In the long run, we spend more money doing this, because we are buying foods only by looking at the price. For example, I used to buy canned beans because they were cheaper and more convenient than dry beans. When I went grocery shopping with my 22.50 budget, I realized that dry beans were better a better option than canned beans. Some of the good things about buying dry beans are that the ounce is cheaper than canned beans, and they do not contain preservatives. When one ounce of canned beans was 10 cents, the ounce of dry beans was 6 cents. (Brown,
Companies. Retrieved July 4, 2008, from University of Phoenix, MMPBL-501 Web site. University of Phoenix . ( 2008). Economics for Managerial Decision Making
The cafeteria serves about one hundred and fifty residents of Cambridge Hall and approximately one hundred residents from Nottingham Hall. The cafeteria serves hot foods, salads, snacks, sandwiches, and beverages. The data has given me information on the percentage of customers that preferred a hot meal (interactive and precooked) to snacks, the ratio of customers that prefer precooked hot meals over an interactive hot meal, line formation, service times at the different stations, arrival times and the location of the different stations. I also learned that the peak hours of operations are from 5:00 p.m. to 6:30 p.m. and that the cafeteria has two cash registers available but only one is being utilized during the peak hours. If customers decide on a hot meal there is a 2 to 1 ratio that customers will purchase a precooked meal over an interactive meal. Through an informal customer survey, reasonable waiting times were established for the precooked line (5 minutes), the interactive line (10 minutes), and the cashier payment line (1minute).
Since our primary target customers are the university students and the local residents, hence, the price of the meal must be cheap and affordable. There are 2 different groups of target customers where different levels of people have different income. Thus, we take the student’s monthly allowance into the consideration and come out with a promotion plan for the students. When the students show their matrix card, they will get a 15% discount for the bill.
First and foremost, a few key terms to keep in mind while reading this paper.
One of the benefits of using ABC system is product and price mix decisions; one of the
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