# Joliver, a renowned pastry chef employed at a four-star hotel, has decided to open his own…

Joliver, a renowned pastry chef employed at a four-star hotel, has decided to open his own exclusive pastry shop. He has \$100,000 to invest and the information he has obtained is as follows:

■ There is a 55% probability the market size in the area will be 600,000 pastries per year and a 45% chance it will be 450,000 pastries per year.

■ Price per pastry is assumed to be \$4.00 and this is the basis for predicting Joliver’s market share.

■ Variable costs are \$2.60 per pastry.

The market share Joliver will capture depends on where he locates. There are two possibilities:

■ Location A costs \$38,000 annual rent, where Joliver will capture 30% of the pastry market (his market share). Fixed costs excluding rent are estimated at \$90,000 per year.

■ Location B costs \$12,000 annual rent, where Joliver will capture 22% of the pastry market (his market share). Fixed costs excluding rent are estimated at \$54,000 per year.

Required

1. Based on your quantitative analysis, what is the best choice of location for Joliver?

2. There is a consultant who sells industry market information. How much should Joliver be willing to pay to know with certainty what the total market size is?

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.