Two quick questions about the turn, if you don't mind: assuming that the current level of purchasing of The People's Paper continues for the next week, what is next week's expected net income generated by the paper? Also, what was the cause of the material waste for the past week?
1. If there's no material waste and the paper sells exactly as it did on Sunday for the next week (assuming also that it averages twenty pages per paper and costs $2), than roughly $13,000. However, this is unlikely - many people only buy on Sunday and material waste almost always occurs. Expected income is between $6000 and $10,000.
2. This was actually a misunderstand/miscoordination on my part; businesses would probably be responsible for excess papers in the real world. Material waste is caused by printing more papers than are sold. On Day 1, for example, 2000 papers were printed but only 621 were sold. It cost $2000 to print those 2000 papers, but only $1242 in papers were sold; netting a total loss of $758. We're going to assume that businesses pay you AFTER the papers are sold, and so if no-one buys the papers than you receive no money. This method is likely to make businesses more obliged to stock their stores with your papers (as there is less risk involved), but will mean they are less inclined to push paper sales. It really depends on the way you want to run it; covering losses yourself will encourage more places to get involved and thus spread your newspaper, while making businesses pay for the paper beforehand will lead to less businesses adopting the paper (due to not wanting the risk of buying papers that may not sell) but reduce the cost to yourself incase supply outstrips demand. I'll assume for the time being that you're using the first model (due mostly to the fact that it's how I wrote it in Turn 3), but you can switch to the second method if you wish.
EDIT/NOTE: Material waste was very high for this first week because demand was being gauged. Demand was low on the first day to people simply not realizing that it was for sale, and rose quickly because the "news" spread of its printing. Material waste will undoubtedly drop as the number of buyers becomes more stable.
Author
Topic: Foundations of Government (OOC) (Read 15324 times)