Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sparrow Caf is open for lunch and dinner seven days a week. The restaurant was asked recently to cater a birthday party for 34 people

Sparrow Caf is open for lunch and dinner seven days a week. The restaurant was asked recently to cater a birthday party for 34 people at a house in the neighbourhood. Staff would have to prepare the food in the caf kitchen and then transport it offsite to the party. The chef figures that the regular 5 cooks in the kitchen on a Saturday would be able to fit most of the food preparation into their schedule, but they would need at least 1 more cook for the afternoon for 5 hours at $20 per hour. The chef maintains a 40% food cost according to the annual budget and 4 additional servers and a supervisor would be needed to serve food at the party. The party is expected to last 5 hours on Saturday night. Servers earn $16 per hour and the supervisor earns $38,000 per year. The restaurant would also have to rent a truck for $90 to transport the food. If the restaurant does not accept the job, the supervisor will resume normal duties in the caf for Saturday service. Based on a quantitative analysis, should the restaurant accept the birthday party job if the customer can pay only $30 per person for food? Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Use the negative sign for a net loss. Revenue $1020 Food Cost $408 Servers $400 Cook Truck Total Costs Net Income (Loss) $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Financial Reporting With Powerpivot

Authors: Florent Cailly, Thomas Brajcich

1st Edition

1517437563, 978-1517437565

More Books

Students also viewed these Accounting questions

Question

Describe the social tasks and challenges of adolescence.

Answered: 1 week ago

Question

Briefly explain the various types of leadership ?

Answered: 1 week ago

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago

Question

What is meant by organisational theory ?

Answered: 1 week ago

Question

=+ Why do we have markets and, according to economists,

Answered: 1 week ago