The manager at Raphael's Four-Star Italian Restaurant wants to set the price of their premiere entre. He
Question:
The manager at Raphael's Four-Star Italian Restaurant wants to set the price of their premiere entrée. He estimates a loyal customer is worth $1,000. Based on survey data, the customer defection rate is 0.22, the repurchase frequency is once a month, and the restaurant’s contribution margin is 18.5 percent. What is the price he should charge for the premiere entrée? Use the Excel template VLC to search for the solution. worth $1,000. Based on survey data, the customer defection rate is 0.22, the repurchase frequency is once a month, and the restaurant’s contribution margin is 18.5 percent. What is the price he should charge for the premiere entrée? Use the Excel template VLC to search for the solution.
Step by Step Answer:
Operations And Supply Chain Management
ISBN: 9780357131695
2nd Edition
Authors: David A. Collier, James R. Evans