Roscoe rascals decided to add the pet food line

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Reference no: EM1321552

Q. 1. A Local pet store Roscoe's rascals who has concentrated on selling puppies, is considering adding a line of pet food. A contractor estimates that it will cost $10,000 to convert some storage space into a retail area for the food. Roscoe's Rascals will purchase the uniquely food for $15 also sell it for $30. Marketplace research indicates that the store will sell 900 bags. Should Roscoe's Rascals add pet food to its products?

2. Assume that Roscoe's Rascals decided to add the pet food line. Two months after it began selling the food, its pet food sales declined dramatically because a competitor across the street started selling the identical food for $22 per bag. Should Roscoe's Rascal match the cost offered by competitor?

3: A copy company wants to expand construction. It currently has 20 workers who share eight copiers. Two months ago the firm added two copiers also output increases by 100,000 pages per day. One month ago, they added five workers also productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?

Reference no: EM1321552

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