Current Attempt in Progress The Blue Parrot is an expensive restaurant in midtown open only for dinner. Entrees are set at a fixed price of $42. In a typical month the restaurant will serve 3,600 entrees. Monthly variable costs are $61,200, and fixed costs are $31,000 per month. Customers or waiters send back 8% of the entrees because of a defect, and they must be prepared again; they cannot be reworked. The restaurant owners hired a qualified Black Belt to undertake a Six Sigma project at the restaurant to eliminate all defects in the preparation of the entrees (i.e., 3.4 DPMO). Compare the profit in both situations, with and without defects, and indicate both the percentage decrease in variable costs and the percentage increase in profits following the Six Sigma project. Assuming that the restaurant paid the Black Belt $25,000 to achieve zero defects, and the restaurant owners plan to amortize this payment over a 3-year period (as a fixed cost), what is the restaurant return on its investment (without applying an interest rate)? (Round answer to 0 decimal places, e.g. 15%) Return on investment e Textbook and Media Save for Later Attempts: unlimited Submit Answer

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
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The Blue Parrot is an expensive restaurant in midtown open only for dinner. Entrees are set at a fixed price of $42. In a typical month
the restaurant will serve 3,600 entrees. Monthly variable costs are $61,200, and fixed costs are $31,000 per month. Customers or
waiters send back 8% of the entrees because of a defect, and they must be prepared again; they cannot be reworked. The restaurant
owners hired a qualified Black Belt to undertake a Six Sigma project at the restaurant to eliminate all defects in the preparation of the
entrees (i.e., 3.4 DPMO). Compare the profit in both situations, with and without defects, and indicate both the percentage decrease in
variable costs and the percentage increase in profits following the Six Sigma project. Assuming that the restaurant paid the Black Belt
$25,000 to achieve zero defects, and the restaurant owners plan to amortize this payment over a 3-year period (as a fixed cost), what
is the restaurant return on its investment (without applying an interest rate)? (Round answer to 0 decimal places, e.g. 15%)
Return on investment
e Textbook and Media
Save for Later
Attempts: unlimited
Submit Answer
Transcribed Image Text:Current Attempt in Progress The Blue Parrot is an expensive restaurant in midtown open only for dinner. Entrees are set at a fixed price of $42. In a typical month the restaurant will serve 3,600 entrees. Monthly variable costs are $61,200, and fixed costs are $31,000 per month. Customers or waiters send back 8% of the entrees because of a defect, and they must be prepared again; they cannot be reworked. The restaurant owners hired a qualified Black Belt to undertake a Six Sigma project at the restaurant to eliminate all defects in the preparation of the entrees (i.e., 3.4 DPMO). Compare the profit in both situations, with and without defects, and indicate both the percentage decrease in variable costs and the percentage increase in profits following the Six Sigma project. Assuming that the restaurant paid the Black Belt $25,000 to achieve zero defects, and the restaurant owners plan to amortize this payment over a 3-year period (as a fixed cost), what is the restaurant return on its investment (without applying an interest rate)? (Round answer to 0 decimal places, e.g. 15%) Return on investment e Textbook and Media Save for Later Attempts: unlimited Submit Answer
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