Week 8 Assignment 1
Keila Stinson
Strayer University
MAT 540
Dr. Negash Begashaw
March 2, 2015

In the case study regarding Julia’s food booth a solution needs to be determined as to if investing in a booth to sell food during Tech football games is a sound investment. Julia is considering leasing a booth to sell food outside of Tech stadium at home football games to generate revenue in order to finance her final year at the school. After all of her expenses are paid Julia wants to bring in a profit of $ 1,000 per game. If she can accomplish this then she feels that it will be worth the money to invest in a booth. The fixed cost associated with leasing the booth would include $1,000 per game for booth rental and $600 to lease a warming oven for the six home football games. Julia’s has $1,500 available cash, which she will use to purchase and prepare the food for the first game. For the remaining home games she plans on using funds generated from the previous game to purchase her ingredients. In order to help Julia determine if she should lease a booth a linear programming model should be formulated and solved. The first step in setting up the model is to determine the variables. The variables for this case include: x1 =Pizza, x2 = Hotdogs, and x3= BBQ sandwiches. These variables are the three food choices Julia wishes to sell at her booth. Julia’s objective function in this case is to maximize profit (maximize Z). Julia’s objective function in this case equates to Maximize Z = .75x1 + 1.05x2 + 1.35x3 =0. Within operating the booth there are some constraints that Julia will be faced with which include: cost budget, oven space, and ratio constraints on food. As previously stated Julia has $1,500 available to purchase and prepare food. Each pizza will cost Julia $6 which will include 8 slices per pizza. She plans on selling the pizza a $1.50 per slice.