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Chapter 2: Multiplying and Dividing Fractions Numbers in the Real World |
Making Dough With Pizza
You are considering opening up a pizza restaurant. As you are checking out franchise options, you find a page, such as the Uncle Sam's Pizza Company page. Below is an excerpt from that page:
Cost |
Range of Costs |
The Franchise Fee |
$10,000 |
The Cost of Renovating Existing Building |
$2,000 to $10,000 |
The Cost of Signage, the Kitchen Equipment and Smallwares, and the Computer System |
$30,000 to $50,000 |
Other Startup Costs(hiring, training, advertising, etc.) |
$2,000 to $5,000 |
Totals |
$44,000 to $75,000 |
Your parents offer to pay 1/2 of the franchise fee. How much will
they pay?
You have found an existing building to remodel. The cost estimates (labor and materials) are $8,000. If you help with the labor, you will save 1/3 of the remodeling cost. How much will you save?
You find a commercial auction that has most of the kitchen equipment you need. You can buy it at 1/5 off of retail. What fraction of retail are you paying then? If you paid $18,000 at the auction, what is the retail price?
The cost of signage, smallwares, and the computer system comes to $12,500.
There are three other franchises going in within a 50-mile radius. You and the other three owners go in together on the hiring, training, and advertising costs. What fraction of the cost are you paying? If the total expense is $15,000, what is your share?
What other startup costs might you have? What would be reasonable cost figures for them?
Compute your total costs. Does your total fall
in the range of total costs listed in the table?
If so, how much is it above the lower figure? How much is
it below the higher figure?
Your uncle asks to be a silent partner in exchange for his paying 1/5
of the total startup costs. How much would he pay?
How much would you pay? Compute your answer using
two different methods. Explain your work.