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Sawadee is a Thai restaurant located at Quarry Bay. It has 80 seats and operates 12 hours a day. There are two new catering outlets
Sawadee is a Thai restaurant located at Quarry Bay. It has 80 seats and operates 12 hours a day. There are two new catering outlets located near Sawadee opened in July 2020. Since then, the sales of Sawadee dropped. Below are the expenses of Sawadee in September 2020: Advertising Casual Wages (10% of sales revenue) Depreciation Food and beverage cost (35% of sales revenue) General and administration Other Fixed Cost Other Variable Cost (3% of sales revenue) Rent and Rates Staff Salaries Utilities $ 8,000 50,000 5,000 175,000 5,000 60,000 15,000 200,000 150,000 70,000 Required a. Find the Revenue Per Available Seat Hour (RevPASH) of Sawadee in September 2020- b. All fixed costs and the proportion of variable costs in October 2020 are the same as in September 2020, and the forecast of check average is $195. 1. Determine the breakeven in sales level (in terms of sales revenue and number of covers served) in October 2020.- 2. Draw a breakeven graph to identify the breakeven level. You should indicate the fixed costs and the breakeven level in sales revenue and units sold on the graph. 3. If the projected seat turnover is two (2) times in October 2020, what is the projected number of covers served in October 2020?- 4. If the cost of food and beverage reduces to 30% of sales revenue, the total fixed costs increase by $15,000, and the owner of the restaurant aims at a profit of $75,000 in October 2020, determine the sales revenue required c. In view of the intensified competition, suggest and explain any three (3) actions with examples of Thai food and beverage items that Sawadee can take to increase sales revenue but without raising the selling price. Sawadee is a Thai restaurant located at Quarry Bay. It has 80 seats and operates 12 hours a day. There are two new catering outlets located near Sawadee opened in July 2020. Since then, the sales of Sawadee dropped. Below are the expenses of Sawadee in September 2020: Advertising Casual Wages (10% of sales revenue) Depreciation Food and beverage cost (35% of sales revenue) General and administration Other Fixed Cost Other Variable Cost (3% of sales revenue) Rent and Rates Staff Salaries Utilities $ 8,000 50,000 5,000 175,000 5,000 60,000 15,000 200,000 150,000 70,000 Required a. Find the Revenue Per Available Seat Hour (RevPASH) of Sawadee in September 2020- b. All fixed costs and the proportion of variable costs in October 2020 are the same as in September 2020, and the forecast of check average is $195. 1. Determine the breakeven in sales level (in terms of sales revenue and number of covers served) in October 2020.- 2. Draw a breakeven graph to identify the breakeven level. You should indicate the fixed costs and the breakeven level in sales revenue and units sold on the graph. 3. If the projected seat turnover is two (2) times in October 2020, what is the projected number of covers served in October 2020?- 4. If the cost of food and beverage reduces to 30% of sales revenue, the total fixed costs increase by $15,000, and the owner of the restaurant aims at a profit of $75,000 in October 2020, determine the sales revenue required c. In view of the intensified competition, suggest and explain any three (3) actions with examples of Thai food and beverage items that Sawadee can take to increase sales revenue but without raising the selling price
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