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Problem No. 2 options I. By improving purchasing and reducing portions, cutting the food cost from 45% to 40% of food sales revenue. There would
Problem No. 2 options I. By improving purchasing and reducing portions, cutting the food cost from 45% to 40% of food sales revenue. There would be no other changes. Cutting the food costs from 45% to 40% of food sales revenue and spending an additional S2,000 a month on advertising. It is estimated that the advertising would bring in extra customers and increase the volume of both food and beverage revenue by 20% over present levels. The extra customers would also incur extra costs over present levels as follows: 2. a. Wages b. Supplies800 c. Administration200 d. Repairs 30 e. Energy Costs100 $2,000 Using the schedule below prepare how both alternatives compare to the budgeted proposed for the current month and advise the owner of which alternative you consider the best and why
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