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Rosabella Rosabella Restaurants is a popular Italian restaurant chain located in the southwestern United States. Typical Italian food such as ravioli, lasagne, and fettuccine Alfredo

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Rosabella Rosabella Restaurants is a popular Italian restaurant chain located in the southwestern United States. Typical Italian food such as ravioli, lasagne, and fettuccine Alfredo can be purchased at a reasonable price at these family-friendly restaurants. All of the restaurants are owned and operated by Rosabella Restaurants, Inc. Ms. Jennifer Churchman, a regional controller for Rosabella Restaurants, has seen decreas- ing profits from one of the properties in her region and is in the process of determining the cause of this problem. Ms. Churchman requested financial information from the property, in- cluding a food menu abstract, to get the entire picture of the restaurant's operations. The res- taurant general manager provided all of the requested information. Below is the food menu abstract for dinner entres over the last three months. Rosabella Restaurant on Martin Street Food Menu Abstract (Sales Mix) Date: July-September 2008 Meal Period: Dinner Entres Menu Item Name Number Menu Item Item Item Menu Menu Menu Sold Mix & Food Selling CM Costs Revenues CM (MM) Cost Price Baked Ziti 125 3.85% $ 1.75 $8.39 56.64 $ 218.75 $ 1.048.75 S 830.00 Cheese Ravioli 378 11.659 $ 3.64 $7.99 $ 4.35 $ 1.375.92 $ 3.020.22 $ 1.644.30 Chicken Fettuccine Alfredo 280 8.636 $ 2.10 $9.99 $7.89 $ 588.00 $ 2.797.20 $ 2.209.20 Chicken Marsala 65 2.00% $ 2.25 S 13.29 $ 11.04 $ 146,25 S 863.85 $ 717.60 Chicken Parmigiana 115 3.54% $ 1.98 $9.99 $ 8.01 $ 227.70 $ 1.148.85 $921.15 Eggplant Parmigiana 198 6.10% $ 1.75 $ 7.99 $ 6.24 $ 346,50 S 1.582.02 $ 1,235.52 Fettuccine Alfredo 286 8.81% $ 1.85 $ 6.99 $ 5.14 $ 529.10 $ 1.999.14 $ 1.470.04 Grilled Chicken with Garlic Herb Pasta 156 4.819 $ 2.10 $ 8.29 5.6.19 5 327.60 $ 1.293.24 $ 965.64 Grilled Salmon 225 6.93% $ 1.10 $ 12.99 $ 11.89 $ 247.50 S 2,922.75 $ 2,675.25 Lasagne 415 12.78% $ 2.30 $7.99 $ 5.69 $ 954.50 $ 3,315.85 $ 2,361.35 Manicotti 186 5.73 $1.95 $ 7.39 $5.44 $362.70 $ 1,374.54 $ 1.011.84 Seafood Fettuccine Alfredo 45 1.395 $ 3.20 $ 11.99 $ 8.79 $ 144.00 $ 539.55 $ 395.55 Seafood Ravioli 83 2.56% $ 3.35 $ 10:39 $ 7.04 $ 278.05 $ 862.37 $ 584.32 Shrimp Scampi 124 3.82 $ 3.10 $ 10,99 $ 7.89 $ 384.40 $ 1.362.76 $ 978.36 Spaghetti with Meatballs 318 9.80% $ 2.10 58.29 $6.19 5 667.80 $ 2.636.22 $ 1.968.42 Three-meat Cannelloni 81 2.50% 52.45 S 8.99 $ 6.54 5 198.45 $728.19 $ 529.74 Vegetarian Lasagne 166 5.11 $ 2.08 $8.99 $6.91 $345.28 $ 1,492 34 $ 1.147.06 Ms. Churchman has asked you to analyze the food menu abstract and given you the following questions to answer: QUESTIONS 1. Do there appear to be any abnormalities with the report? Look for any items that seem unusual, such as item food cost. 2. Analyze the report. Which items have the highest contribution margin? Which items have the lowest contribution margin? 3. What advice can you provide to the restaurant manager for improving the restaurant's sales mix? Rosabella Rosabella Restaurants is a popular Italian restaurant chain located in the southwestern United States. Typical Italian food such as ravioli, lasagne, and fettuccine Alfredo can be purchased at a reasonable price at these family-friendly restaurants. All of the restaurants are owned and operated by Rosabella Restaurants, Inc. Ms. Jennifer Churchman, a regional controller for Rosabella Restaurants, has seen decreas- ing profits from one of the properties in her region and is in the process of determining the cause of this problem. Ms. Churchman requested financial information from the property, in- cluding a food menu abstract, to get the entire picture of the restaurant's operations. The res- taurant general manager provided all of the requested information. Below is the food menu abstract for dinner entres over the last three months. Rosabella Restaurant on Martin Street Food Menu Abstract (Sales Mix) Date: July-September 2008 Meal Period: Dinner Entres Menu Item Name Number Menu Item Item Item Menu Menu Menu Sold Mix & Food Selling CM Costs Revenues CM (MM) Cost Price Baked Ziti 125 3.85% $ 1.75 $8.39 56.64 $ 218.75 $ 1.048.75 S 830.00 Cheese Ravioli 378 11.659 $ 3.64 $7.99 $ 4.35 $ 1.375.92 $ 3.020.22 $ 1.644.30 Chicken Fettuccine Alfredo 280 8.636 $ 2.10 $9.99 $7.89 $ 588.00 $ 2.797.20 $ 2.209.20 Chicken Marsala 65 2.00% $ 2.25 S 13.29 $ 11.04 $ 146,25 S 863.85 $ 717.60 Chicken Parmigiana 115 3.54% $ 1.98 $9.99 $ 8.01 $ 227.70 $ 1.148.85 $921.15 Eggplant Parmigiana 198 6.10% $ 1.75 $ 7.99 $ 6.24 $ 346,50 S 1.582.02 $ 1,235.52 Fettuccine Alfredo 286 8.81% $ 1.85 $ 6.99 $ 5.14 $ 529.10 $ 1.999.14 $ 1.470.04 Grilled Chicken with Garlic Herb Pasta 156 4.819 $ 2.10 $ 8.29 5.6.19 5 327.60 $ 1.293.24 $ 965.64 Grilled Salmon 225 6.93% $ 1.10 $ 12.99 $ 11.89 $ 247.50 S 2,922.75 $ 2,675.25 Lasagne 415 12.78% $ 2.30 $7.99 $ 5.69 $ 954.50 $ 3,315.85 $ 2,361.35 Manicotti 186 5.73 $1.95 $ 7.39 $5.44 $362.70 $ 1,374.54 $ 1.011.84 Seafood Fettuccine Alfredo 45 1.395 $ 3.20 $ 11.99 $ 8.79 $ 144.00 $ 539.55 $ 395.55 Seafood Ravioli 83 2.56% $ 3.35 $ 10:39 $ 7.04 $ 278.05 $ 862.37 $ 584.32 Shrimp Scampi 124 3.82 $ 3.10 $ 10,99 $ 7.89 $ 384.40 $ 1.362.76 $ 978.36 Spaghetti with Meatballs 318 9.80% $ 2.10 58.29 $6.19 5 667.80 $ 2.636.22 $ 1.968.42 Three-meat Cannelloni 81 2.50% 52.45 S 8.99 $ 6.54 5 198.45 $728.19 $ 529.74 Vegetarian Lasagne 166 5.11 $ 2.08 $8.99 $6.91 $345.28 $ 1,492 34 $ 1.147.06 Ms. Churchman has asked you to analyze the food menu abstract and given you the following questions to answer: QUESTIONS 1. Do there appear to be any abnormalities with the report? Look for any items that seem unusual, such as item food cost. 2. Analyze the report. Which items have the highest contribution margin? Which items have the lowest contribution margin? 3. What advice can you provide to the restaurant manager for improving the restaurant's sales mix

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