Hamburgers

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How Many Hamburgers?
The data:
Charlie sells around 12 cases of hamburgers weekly.
Each case contains 80 hamburgers
Each hamburger patty costs $.60
New vender offer is:
Week 1 order: 50 cases at $.30 per patty
Then 15 cases for the next 12 weeks at $.45 per patty
Question
1.How many hamburgers does Charlie normally sell during the period of the contract? Charlie normally sells 12480 hamburgers during the period of the contract. 80 hamburgers (12 cases) = 960 hamburgers a week

960 hamburgers a week (13 weeks) = 12480 hamburgers during the period of the contract (13 weeks)

2.What is the total cost of the hamburger inventory for the period? The total cost of the hamburger inventory for the period is $7428.00. 12480 hamburgers ($0.60) = $7488.00 during the period of the contract.

3.How many hamburgers will Charlie need to purchase under the new vendor contract? Charlie will need to purchase 18400 hamburgers under the new vendor contract of 13 weeks. 50 cases (80 hamburgers) = 4000 hamburgers for week 1

15 cases (80 hamburgers) (12 weeks) = 14400 hamburgers for the next 12 weeks 4000 hamburgers (week 1) + 14400 hamburgers (12 weeks) = 18400 hamburgers during the period of the contract of 13 weeks

4.What is the total cost of this inventory?
The total cost of the hamburger inventory for the period is $7680.00. 4000 hamburgers ($0.30) = $1200.00
14400 hamburgers ($0.45) = $6480.00
$1200.00 + $6480.00 = $7680.00 during the period of the contract.

5.What is the average cost of a hamburger under this deal? (Round to the nearest cent.) The average cost of a hamburger under the new deal is $0.42
$7680.00 / 18400 hamburgers = $0.42 (.4173…..3)

6.What is the percent savings per hamburger under the new deal? The percent savings per hamburger under the new deal is 30 % $0.60 - $0.42 = $0.18
$0.18 / $0.60 = .3
.3 (100) = 30%

7.What is the total cost savings? If Charlie accepts the new deal, rather than buying the same amount of...
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