# While Charlie is out ofthe shop, a local meat vendor calls a

While Charlie is out ofthe shop, a local meat vendor calls and asks to speak to the manager ofBrubaker’s Grill regarding a money saving deal he can offer on hamburger meat.Joe is excited to talk with the vendor. He is anxious to prove to Charlie thathe can be a manager, so he arranges a meeting with the vendor to explore theoffer. The deal, as proposed by the vendor, would require Brubaker’s to buy alot of hamburgers, but the price per patty sounds very attractive. Joe listensto the proposal and wonders if this offer is worth pursuing, given theirhistorical rate of hamburger usage and the prices per patty that they arecurrently paying.The data:Charlie sells around 12cases of hamburgers weekly.· Each case contains 80 hamburgers· Each hamburger patty costs $.60New vender offer is:· Week 1 order: 50 cases at $.30 per patty· Then 15 cases for the next 12 weeks at $.45 per pattyQuestions1. How many hamburgers does Charlie normally sell during the periodof the contract?2. What is the total cost of the hamburger inventory for the period?3. How many hamburgers will Charlie need to purchase under the newvendor contract?4. What is the total cost of this inventory?5. What is the average cost of a hamburger under this deal? (Round tothe nearest cent.)6. What is the percent savings per hamburger under the new deal?7. What is the total cost savings? If Charlie accepts the new deal,rather than buying the same amount of burgers from his current vendor, what isthe total cost savings?8. If hamburger sales remain stable at 12 cases per week during thisperiod, how many hamburgers will Charlie have remaining in inventory at the endof 13 weeks?9. If hamburger sales remain stable at 12 cases per week into thefuture, how many weeks will it take to sell the remaining hamburgers? (Round tothe nearest week.)10. If Joe can figure out a way to sell 14 cases a week, how manyweeks will it take to sell the entire new vendor inventory? (Round to the nearestweek.)11. Beyond the price per patty savings, what factors should Joeconsider when advising Charlie whether or not to take the new deal?12. The price per patty quoted by the new vendor is attractive, but isthis a good deal for the restaurant?13. Beyond the cost savings, what other factors need to be consideredbefore buying a lot more hamburgers than you have sold in the past?14. How can Joe make this deal more attractive to Charlie?