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Taco Quatro can make their entire menu out of their fantastic four Mexican ingredients, cheese, meat, beans and tortillas. A Nacholupa needs 2 ounces of cheese, 4 ounces of beans and 3 tortillas. A Quesatilla needs 4 ounces of cheese, 2 ounces of meat and 1 tortilla. An Enchinacho requires 2 ounces each of cheese, meat, and beans plus 3 tortillas. Their newest menu item, the Burritacg needs 4 ounces of cheese, 2 ounces of meat and one tortilla. A Nacholupa sells for $2.75, a Quesatilla sells for $2, an Enchinacho sells for $3 and the new Burritace sells for $4. The assistant manager checks the cooler one fine Monday morning and sees that they have 400 ounces of cheese, 150 ounces of meat, 400 ounces of beans and 250 tortillas on hand. a. Formulate a linear programming model for this problem b. Solve the model by using the computer.
 
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Martha, as a home-service medical care volunteer, has cared for George through the final weeks
of his fatal illness. Just before he died, George told Martha where a large sum of money he had
accumulated was stored. He asked her to see that the money was given to the Society for Protection
against Alien Control of the Earth (SPACE). Since George’s illness did not affect his mental
capacity, she agreed. But now that he has died, she is considering using the money to support the
activities of the local Hunger Task Force, an organization that provides donated food to those who
need it. George has no surviving friends or relatives, and no one else knows about the money. He
left no written will.
i) What will you do in this situation if you were Martha?
ii) Describe your argument in the light of an ethical theories that we covered in our course.
Which ethical theory did you choose?
iii) Explain your choice of ethical theories with contrast to other ethical theories with
respect to the given situation.
 
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Chapters 4 and 5 Continued 1. Jonathan is 90 years old and his mental health is deteriorating rapidly. He has Alzheimer’s and, while he does have moments of lucidity, they are rare. Michael, 30, is the son of a family friend and sees Jonathan’s mental condition. Michael loves Jonathan’s old Jaguar car which has been kept in pristine condition. The young man thought he could get a cheap deal on the car if he could take advantage of Jonathans’ mental condition. Michael waited until Jonathan was having a mental episode and demanded that Michael give the car up in exchange for only $100. Michael signed the contract and necessary paperwork. Later, Jonathan’s family, legally acting on Jonathan’s behalf, tried to rescind the contract and had to sue Michael for it. What will the result of the lawsuit be?
 
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  1. Calistro currently operates in a market that has been estimated to have about 5 mill. customers and it is estimate that it has a market share of 8%. The average customer purchase is of $100 per year. The gross margin of Calistro is of 60% and the company’s current budget allocates $12 mil. for marketing and sales expenses. The marketing team debates two options:
    1. to create a marketing campaign to show the benefits of the Calistro products compared to competitors in order to increase the market share to 10%. The estimate is that the campaign would cost about $2 mil. extra.
    2. to allocate an extra million to the sales team in order to increase the sales per customer by 5%(gross margin would remain the same %).

As Calistro’s CMO, which initiative would you support and why? For full and partial credit show your work clearly!

  1. New Kitchen created an electric opener for wines and any other jars or bottles. The tested customers seemed to like the product, but the company has trouble gaining market share and developing the market. The problem that the company faces is that 60% of the potential customers do not know that the product exists, 30% think it is too expensive, 20% think it will not look good on their counters and 25% do not want another thing on their counters. What is the market development index? Is that good news or bad news? (Hint: The fact that 25% do not want another thing on their counter means that 75% do not have a problem with that.)
 
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