In february, wally wade, owner of bama fan supplies, inc., must place an order with nike for the new alabama football shirts for the coming season. the long lead time is required for the contract manufacturers in asia to order the necessary materials and to begin production in april. the shirts will be delivered to wally in early-august just in time for the new season. nike will charge wally $50 for each shirt he orders, and he will sell each shirt for $75 during the season. there will not be another opportunity for wally to order any more shirts if he runs out. at the end of the season wally will sell all the shirts that are left at a price of $15. obviously, wally doesn’t know exactly what the demand for these shirts will be, but during the past couple of years he has sold an average of 500 shirts each season

Question 3 options: ps.55 four corners is an ibc company that sells delicious navajo tacos in the crossroads food court. part of their success can be attributed to the freshly fried indian bread that is used not only for the tacos, but also for dessert items. as demand grows the fry-bread process is becoming a bottleneck. operations management for the company is looking at two different process options to replace the highly manual process currently being used. option 1 (medium automation) would cost $175 to implement whereas option 2 (high automation) would cost $350. with option 1 the variable cost per fry bread produced would be $0.20. the variable cost for option 2 would be $0.09 per fry bread. at what volume (demand) of fry breads is the cost for the two options the same? (display your answer to two decimal places.)