Answered step by step
Verified Expert Solution
Question
1 Approved Answer
calculate the financial ratios for both location, north vancouver and abbsford 7:00PM to 10:00PM. Chintu predicts that if the caf were to be in North
calculate the financial ratios for both location, north vancouver and abbsford
7:00PM to 10:00PM. Chintu predicts that if the caf were to be in North Vancouver, the cost of all the items would remain the same, however the selling price of each item could be increased by 10%. Chintu suspects that the number of units sold would remain the same regardless of location. The caf would require two employees to be on shift at all times. Chintu plans to pay the employees BC minimum wage which is $16.75 per hour. The employees would start work one hour before opening and end their shifts one hour after closing. Chintu hopes that her business would be profitable enough for her to take an annual salary at least equivalent to what she is making at Raj Mahal Restaurant. Raj has told Chintu that she will generously gift Chintu with some of the old pots and pans from Raj Mahal Restaurant that are not being used. Chintu is budgeting to spend at least $10,000 in start-up costs (cups, plates, tables, chairs, etc). Chintu would like a detailed budget for both locations to better understand where profits would be greater for her business. Being a detail-oriented person, she knows that there can be fluctuation in financial results depending on sales and expenses. Chintu is curious to know what the difference would be between an optimistic budget and a more conservative one. She also wants details on how actual results are evaluated when compared to budgets. Chintu wonders whether her estimates for number of sales per location are appropriate based on the demographics of the locations. Are there certain products she should focus on promoting and selling more of or some products that should be discontinued? Chintu would appreciate advice on product offering. During a visit to Surrey, Jassa gets into conversation with the owner of a local restaurant, Maharaja Catering. The owner of Maharaja tells Jassa he is willing to sell samosas for $1.25 each to Chintu Chaiwala as long as Chintu pays for all shipping and handling costs. The shipping and handling for 100 samosas would be $50. Chintu would like to know whether it makes sense to purchase samosas from Maharaja Catering or continue making them in-house. Chintu estimates that $125 of overhead is spent producing 500 weekly servings of samosas. The ot costs are typically 50% direct labour and 50% on direct materials. Chintu is wondering what the breakeven revenues and units are with regards to samosa servings. She has also heard of margin of safety and CVP graphs- she would like more details on those. 7:00PM to 10:00PM. Chintu predicts that if the caf were to be in North Vancouver, the cost of all the items would remain the same, however the selling price of each item could be increased by 10%. Chintu suspects that the number of units sold would remain the same regardless of location. The caf would require two employees to be on shift at all times. Chintu plans to pay the employees BC minimum wage which is $16.75 per hour. The employees would start work one hour before opening and end their shifts one hour after closing. Chintu hopes that her business would be profitable enough for her to take an annual salary at least equivalent to what she is making at Raj Mahal Restaurant. Raj has told Chintu that she will generously gift Chintu with some of the old pots and pans from Raj Mahal Restaurant that are not being used. Chintu is budgeting to spend at least $10,000 in start-up costs (cups, plates, tables, chairs, etc). Chintu would like a detailed budget for both locations to better understand where profits would be greater for her business. Being a detail-oriented person, she knows that there can be fluctuation in financial results depending on sales and expenses. Chintu is curious to know what the difference would be between an optimistic budget and a more conservative one. She also wants details on how actual results are evaluated when compared to budgets. Chintu wonders whether her estimates for number of sales per location are appropriate based on the demographics of the locations. Are there certain products she should focus on promoting and selling more of or some products that should be discontinued? Chintu would appreciate advice on product offering. During a visit to Surrey, Jassa gets into conversation with the owner of a local restaurant, Maharaja Catering. The owner of Maharaja tells Jassa he is willing to sell samosas for $1.25 each to Chintu Chaiwala as long as Chintu pays for all shipping and handling costs. The shipping and handling for 100 samosas would be $50. Chintu would like to know whether it makes sense to purchase samosas from Maharaja Catering or continue making them in-house. Chintu estimates that $125 of overhead is spent producing 500 weekly servings of samosas. The ot costs are typically 50% direct labour and 50% on direct materials. Chintu is wondering what the breakeven revenues and units are with regards to samosa servings. She has also heard of margin of safety and CVP graphs- she would like more details on thoseStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started