Question
a) A fellow student, who now works in would like to give each student a benefit, which is programmed into the student card. This benefit
a) A fellow student, who now works in would like to give each student a benefit, which is programmed into the student card. This benefit would allow the student to buy a large, pick-up pizza for $5. Normally the pizza sells for $12 and its full cost is $7. Explain if this would be feasible, i.e. Domino's would do the transaction without it being a donation.
b) Domino's currently buys most of its ovens from a manufacturer in China. A representative from a company in Vietnam is offering to sell the ovens for 20% less than cost from the manufacturer in China. Explain the issues that you would consider in deciding whether to accept this offer.
c) Mr. Allison wishes to develop an incentive plan for the store managers. Before the plan is implemented, he wishes you to make sure that budgeting for the stores is done correctly. Submit a document, which discusses the key points related to budgeting.
d) Domino's has only used absorption costing. Mr. Allison has asked you toexplainthe merits of using variable costing under certain circumstances.
e) Mr. Allison has asked you toexplainhow target costing/pricing would be used in Domino's pricing policies.
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