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TCEMG 499- Case Study 2 Operations and Employment Costs PART 1-Determining Monthly Expenses. Imagine you have been recently hired to review a food and beverage
TCEMG 499- Case Study 2 Operations and Employment Costs PART 1-Determining Monthly Expenses. Imagine you have been recently hired to review a food and beverage operation as part ofa larger business. The operation has been in business for several years, but has not been managed welL The previous manager was never really sure if they were making a profit breakingeven, or a loss. For the sake o mplicity for this case stud following menu listing is collapsed into categories using averages. Prior to critiquing any component of products, pricinE, or operations you must first determine if the operation is currently sustainable. With your training and expertise, you know that the first step is to determine the total operating costs for the operation. Using the information below, determine the total costs/expenses for a typical in-season month The first category of expenses you wi d to lculate be the direct cost of the ite you sell, commonly referred to as Cost of Goods sold COGS For each below, calculate the cost of one item, then multiply by average units sold please do not get ng upon individu numbers) Cold sandwiches (numbers average per sandwich) Bread: $2 per 40 slice package, meatlcheese; 0.22 per sandwich, other topping $0.12. per sandwich Average sold in a wee 300 Hot/grilled sandwiches Bun; SA per 24 count, meat; average $3 per pound, Xpound per sandwich, other 50,18 per Average sold in a wee Sides (We'll keep it 1.0S each Average sold in a wee 615 Beverage Bottl rage of 0A8 a week 575 Average sold Fountain 33 (includes cost of cups/ids/straw) Average sold 350 Beer (no wine or spirits) Domestic cars $0,87 each Average sold a wee Craft cans/bottles $1.25 Average sold a week 175 Domestic Draft -$0.60 Average sold 225 Local Craft Draft S1.15 Average sold 185
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