to the stand and total potential consumers in general, I took the average daily foot traffic to one
of Newport Beach's piers (taken from Newport Beach
Ca.gov) and divided it by 35 as my best
guess would be that only one in 35 people would want a frozen banana. While this data would
vary slightly depending on several factors such as the time of year or weather, I estimated that an
average of 2,500 people would want a frozen banana. In terms of other producers, there are
currently 2 frozen banana carts in the area including the famous Dad's Donut and Bakery Shop,
which would be the largest competitor.
Broadly, there are several ice cream shops, juiceries, and popsicle stands (google maps
link found on works cited page) that people may flock to for a quick and convenient cold snack.
there are currently 2 frozen banana carts in the area including the famous
Dad's Donut and Bakery Shop. This means that the banana stand is not necessarily offering a
unique service to the area, its presence is more of a convenience thus pricing must be the same.
The Firm's Problem:
In terms of inputs for production, several factors do need to be considered and thoroughly
evaluated in terms of both ingredients and equipment.
In order to assess which fixed inputs are
needed, I loosely relied on a startup plan for an average ice cream stand. This included rent,
plasticware, utilities, wages, signage, permits, certifications, and insurance.
Relative to the variable costs, the fixed costs are much higher. This is mainly because of
the permits that vendors in Newport Beach must often pay in order to operate. After some
calculations based on the average wholesale cost of these ingredients (Costco and Walmart links
listed below), I concluded that the average variable cost per banana sold is about .50 cents. By
using average prices for permits and certifications in Newport Beach (found on Newport Beach