Dollar amounts need to be rounded to 2 decimal places and include a dollar sign: 1) There
Question:
Dollar amounts need to be rounded to 2 decimal places and include a dollar sign:
1) There are multiple options for advertising in the PROSIM module. Advertising is an expense that helps increase revenues. Much like other expenses, it is very important to keep advertising costs at an acceptable level (5-7%, as you have learned).
a) Calculate the cost per family for each of the following advertising options:
Campaign | Total Reach | Families | Cost per Week |
KDIN Broadcast | 206,400 | 92,000 | $10,000 |
Toronto Life | 190,000 | 64,580 | 15646 |
Restaurant Guide | 21,000 | 5,278 | 206 |
(3 Marks)
b) If you expected next week's revenue to be $238,000 what would your advertising budget be? Which of the three options from part A would you choose as your advertising medium and why? (4 Marks)
2) Suppose you have the following 4 items on your menu:
ITEM | FOOD COST |
Bottled Spring Water | $0.18 |
Whole Sea Bream | $26.00 |
Veggie Pizza | $3.25 |
Truffle Risotto | $15.45 |
Using the information you've learned from class and from the pricing module, calculate an appropriate selling price for each of the items listed above.
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik