QUESTION 2 Jeff Fung is having issues with one of his restaurants, Sushi Prince. A) Use the appropriate tool (variance analysis) to evaluate and explain the store's performance QUANTITATIVELY B) Assess performance QUALITATIVELY, linking potential drivers to the appropriate variances. INFORMATION: One of Fung's Toronto restaurants, Sushi Prince, is not meeting profit expectations. Jeff provided the following excerpts from the budget for Sushi Prince for the last month: Meals sold Sales Ingredients cost per meal Variable overhead per meal 13,500 $377,500 $11.00 $3.00 Jeff provided the following excerpts based on the actual results for the month: Meal sold Meals prepared Average sales price per meal Ingredient cost per meal Variable overhead per meal 13.255 13,613 $23.50 $11.75 $2.90 Jeff mentioned that the economy is weakening and he is finding that customers are reacting by eating out less frequently and reducing the amount that they spend on meals, but Jeff thought that he had incorporated this into his budget. A new Mexican restaurant, Taco Tuesdays, opened down the street from Sushi Prince at the beginning of the month and Jeff is convinced that this is the main cause of the variances from budget. Servers were complaining that there were less customers as a result. Jeff mentioned that a few suppliers had increased their prices of some of the more exotic items served on the menu as these items are becoming harder to procure. There have also been several issues with errors in meal preparation due to server carelessness or incorrect orders being prepared in the kitchen. The city implemented new rebates on the cost of some utilities during the month. QUESTION 2 Jeff Fung is having issues with one of his restaurants, Sushi Prince. A) Use the appropriate tool (variance analysis) to evaluate and explain the store's performance QUANTITATIVELY B) Assess performance QUALITATIVELY, linking potential drivers to the appropriate variances. INFORMATION: One of Fung's Toronto restaurants, Sushi Prince, is not meeting profit expectations. Jeff provided the following excerpts from the budget for Sushi Prince for the last month: Meals sold Sales Ingredients cost per meal Variable overhead per meal 13,500 $377,500 $11.00 $3.00 Jeff provided the following excerpts based on the actual results for the month: Meal sold Meals prepared Average sales price per meal Ingredient cost per meal Variable overhead per meal 13.255 13,613 $23.50 $11.75 $2.90 Jeff mentioned that the economy is weakening and he is finding that customers are reacting by eating out less frequently and reducing the amount that they spend on meals, but Jeff thought that he had incorporated this into his budget. A new Mexican restaurant, Taco Tuesdays, opened down the street from Sushi Prince at the beginning of the month and Jeff is convinced that this is the main cause of the variances from budget. Servers were complaining that there were less customers as a result. Jeff mentioned that a few suppliers had increased their prices of some of the more exotic items served on the menu as these items are becoming harder to procure. There have also been several issues with errors in meal preparation due to server carelessness or incorrect orders being prepared in the kitchen. The city implemented new rebates on the cost of some utilities during the month