Problem: Anna is the food and beverage director for a mid-size hotel in a beach destination area. The general manager of the hotel has given Anna a target of 10% profit for this year. Anna's staff is predominantly composed of his beach buddies. Although she is good at controlling most of her costs, she had a hard time telling her friends to go home when business slows down, and he needs to reduce her staff. If she doesn't make her profit goal, her general manager will likely reprimand her, and she could possible lose her job. Express Anna's expenses and profit as a percentage of total revenue, both this year and last year, to determine if she met her profit goal (fill in the blanks). This Year Last Year Total Revenue 1,448,956.00 463,666.00 4 |1,094,276.00 13 F&B Expense 5 9 35 40 Labor Expense Other Expenses Total Expenses Profit 652,030.00 10 15 186,027.00 14 2 7 11 15 12 8.

Problem: Anna is the food and beverage director for a mid-size hotel in a beach destination area. The general manager of the hotel has given Anna a target of 10% profit for this year. Anna's staff is predominantly composed of his beach buddies. Although she is good at controlling most of her costs, she had a hard time telling her friends to go home when business slows down, and he needs to reduce her staff. If she doesn't make her profit goal, her general manager will likely reprimand her, and she could possible lose her job. Express Anna's expenses and profit as a percentage of total revenue, both this year and last year, to determine if she met her profit goal (fill in the blanks). This Year Last Year Total Revenue 1,448,956.00 463,666.00 4 |1,094,276.00 13 F&B Expense 5 9 35 40 Labor Expense Other Expenses Total Expenses Profit 652,030.00 10 15 186,027.00 14 2 7 11 15 12 8.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1PA: Artisan Metalworks has a bottleneck in their production that occurs within the engraving department....

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Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $55,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,000 more units per year. Currently, the selling price per unit is $25 and the cost per unit is $7.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.
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Variety Artisans has a bottleneck in their production that occurs within the engraving department. Arjun Naipul, the COO, is considering hiring an extra worker, whose salary will be $45,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,500 more units per year. Currently, the selling price per unit is $18 and the cost per unit is $5.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.
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Because of the pandemic impact and reduced number of customers, the Ocean View Restaurant has been experiencing decline in dinner sales, and the owners think that keeping it open for one additional hour each night will help the situation. If the restaurants stays open for one more hour, the additional labor costs will be $174 and additional costs for heat and light will be $38. The restaurant's variable rate is .36. What level of dollar sales volume will be required to break even for this additional hour? Select one: a. cannot be determined from the given data b. $212 c. $588.89 d. $331.25 2. Given the following information, determine the difference between book and actual inventory as a percentage of issues: Opening inventory for the day was $200, and daily issues were $500. The purchases totaled $600, and the actual inventory was $250. Show the calculation.
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A local pizza shop owner decides to hire an economic consultant to help him set his prices. Currently, one slice of pizza costs $2 and the store sells about 800 slices per week. The pizza shop's current revenue from sales is equal to $____. The economic consultant estimates that the price elasticity of demand is equal to -0.25, and suggests that the shop owner should increase the price of a slice of pizza by $0.50; that is, the consultant recommends increasing the price of pizza by ____%. The consultant claims that doing so would (a. Increase b. Decrease or C.have no effect on)_____ the number of slices sold by ____% or ____ slices. As a result, the economist predicts that the new revenue would be ____ Thus as a result of the increase in the price there is ____ in revenue. This is due to the fact that the pizza shop owner was operating on the ____ portion of the demand curve. (fill in the blanks)
Recently, the owner of a Trader Joe's franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $65,000, and her store made $120,000 in profits (not counting payment to her top manager). She suspected the store could do much better and feared the fixed salary was causing her top manager to shirk on the job. Therefore, this year she decided to offer him a fixed salary of $30,000 plus 15 percent of the store's profits. Since the change, the store is performing much better, and she forecasts profits this year to be $280,000 (again, not counting the payment to her top manager). Assuming the change in compensation is the reason for the increased profits, and that the forecast is accurate, (a) Which compensation method (the old one or the new one) will the manager prefer? Please explain why. (b) Which compensation method (the old one or the new one) would the owner of the franchise prefer? Please explain why. (c) If there was another…
Timmy knows that Tammy, his boss at ABC Corp., desperately wants to bring the department in under-budget for the year so that she can earn herself a nice year-end bonus. And since Timmy is desperate to butter Tammy up and become her favorite employee, his brain churns out the following logic: Even though I used my own credit card to take that big group of customers out to eat and to the ball game last night, and even though the total cost was $1,200, I’ll not submit an expense report and so not get reimbursed, which will make Tammy very happy and she’ll like me very much! Oh, and since I file a Schedule C for my side business (tax return prep), I’ll just deduct the $1,200 there! Wonderful strategy! Do you agree with Timmy that his strategy is wonderful? Why or why not?
Recently, the owner of KFC Franchise decided to change how she compensated her top manager. Last year, the manager received a fixed salary of GHC50,000 and KFC made GHC110,000 in profits (excluding the manager’s compensation). She feared that her store’s performance was connected to the top manager shirking on the job and expected that changes to her top manager’s compensation structure would improve sales. Therefore, this year she decided to offer him a fixed salary of $40,000 plus 5 percent of the store’s profit. Since the change, the store is performing much better, and she forecasts profits this year to be $300,000 (again, excluding the manager’s compensation). Assuming the change of compensation is the reason for owner make (net of payment to her top manager) because of this change? Does the manager make more money under the new payment scheme?