Question
8.) Identify at least two advantages and disadvantages of having a brick-and-mortar restaurant versus a food truck. 9.) Thinking about sales, is there any day
8.) Identify at least two advantages and disadvantages of having a brick-and-mortar restaurant versus a food truck.
9.) Thinking about sales, is there any day of the week or time of day when greater sales are expected? Which type is more sensitive to this occurrence? Which type is less sensitive to this occurrence? Which type is more advantageous and why? Is there anything else the company can do to manage the decline in sales that come with certain days and times?
10. ) Since no advertising budget is available under this alternative, what are some creative and low-cost methods the company could employ to help advertise the change to a restaurant?
The Great Tamale Alternative 2 - Restaurant Cody notice there is stiff competition in the food cart and food truck industries and therefore are considering opening a traditional restaurant. Opening a restaurant would have many advantages and disadvantages, the company can expect fixed costs to increase by S140,000 a year to cover rent, equipment, furniture, salaries and other costs. This alternative is exclusive of alternative 1-so use the original financial information from page 1 (also shown below) to calculate the effects of opening a restaurant. Sales $217,875.00 Variable costs 46,687.50 Contribution margin 171,187.50 Fixed costs 90,000.00 Income before taxes 81,187.50 Income taxes (32% rate) 25,980.00 Net income $ 55,207.50 Additional Information: This alternative would allow GT to increase their plate prices to $14.50 and would increase the variable cost per unit by $2.50. Assume plate sales remain at 31.125
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