A high-end restaurant wants to introduce a new gourmet dish to its menu. The dish's ingredientcosts are $25 per plate, and the restaurant incurs an additional $10 per plate in overhead costs.The restaurant aims for a profit of $15 per plate. However, to maintain a competitive edge, therestaurant must also cover an additional 5% in marketing costs per dish sold. Using Goal Seek,calculate the new selling price per dish required to meet the profit target while covering theadditional marketing costs.

Approach to solving the question: Detailed Explanation: To use goal seek in excel, follow these…

Answered: A high-end restaurant wants to…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Rochor & Co has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000 units; June, 28,000 units. Sales totalled 16,000 units in March. The March finished goods inventory was 4,000 units. End-of- month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales. How many units would be produced in April? Group of answer choices 20,000 units 20,800 units 5,600 units 4,800 units
You are responsible of developing the six-month aggregate production plan at Sodas Galore, a manufacturer of soft drinks. Your company makes three types of sodas: regular, diet and super-caffeinated. All three types are made using the same production process, and the switching costs can be ignored as they are so minimal. The S&OP team case created the following forecast of demand for the next six months. In addition to the sales forecast, the company has also developed planning values that are also shown in the next table. Month Sales Forecast (cases) Softdrinks Planning Values January 24,000 Current workforce 8 workers 32,000 Average monthly output per worker 32,000 Inventory holding cost 46,000 Regular wage rate February 4,000 cases per month $.30 per case per month $20.00 per hour March April May 60,000 Regular production hours/month 44,000 Overtime wage rate 160 hours June $30.00 per hour 240,000 Hiring cost $1,000 per worker $1.15 per case Total Subcontracting cost Firing/layoff…
The lease of Theme Park, Inc., is about to expire. Management must decide whether to renew the lease for another 10 years or to relocate near the site of a proposed motel. The town planning board is currently debating the merits of granting approval to the motel. A consultant has estimated the net present value of Theme Park’s two alternatives under each state of nature as shown on the following page. What course of action would you recommend using?a. Maximaxb. Maximinc. Laplaced. Minimax regretOptionsMotelApprovedMotelRejectedRenew $ 500,000 $4,000,000Relocate 5,000,000 100,000
Papaya Partners is a distributor of papayas. They purchase papayas from individual growers and package them in 10-pound cartons for delivery to their various customers, generally supermarkets. Last month, they budgeted to sell $500,000 worth of cartons at a price of $25 each. Actual sales met a budget of $500,000 at $25 per carton. The management has received cost information based on actual performance and needs to understand the drivers of the overall variance from the budget. They have asked you, as an analyst in their management accounting department, to calculate and explain the variances. The following data has been provided: Budget Cost of fruit @ 10 pounds per carton $ 200,000 Cost of packaging @ 1 pound per carton $ 10,000 Labor costs @ .5 hourse per carton $ 90,000 Total Cost $ 300,000 Actual Cost of fruit @ 10 pounds per carton $ 244,200 Cost of packaging @ .55 pound percarton$ 11,000 Labor costs @ .75 hourse per carton $ 150,000 Total Cost $405,200 WHAT IS THE STANDARD COST…
SM5 Infinity Enterprises, a large organization with seven business units, recently prepared a BCG Growth-Share Matrix to evaluate whether it has a balanced portfolio of businesses. Upon analysis, its three large business units were identified as stars, two medium-size business units were identified as question marks, and one small business unit each was identified as a cash cow and as a dog. Which of the following is a conclusion you can draw upon evaluating the data? A The company needs to set up more business units that operate in high-growth markets. B The company is probably facing a shortage of funds to fuel its growth. C The company should hold onto the business unit identified as a dog in order to maintain a balanced portfolio of businesses. D The company is probably generating excess cash that can be used to start new business units
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Answer questions using EXCEL , include formulas Myrtle Air Express decided to offer direct service from Cleveland to Mrytle Beach. Management must decided between a full-price service using the company's new fleet of jet aircraft and a discount service using smaller capacity commuter planes. It is clear that the best choice depends on the market reaction to the service Myrtle Air offers. Management developed estimates of the contribution to profit for each type of service based upon two possible levels of demand for service to Mrytle Beach: strong and weak. The following table shows the estimated quarterly profits (in thousands of dollars): Service Strong Weak Full Price $960 -$490 Discount $670 $320 a. What is the decision to be made, what is the chance event, and what is the consequence for this problem? How many decision alternatives are there? How many outcomes are there for the chance event? b. If nothing is known about the probabilities of the chance outcomes,…
19) What is the EBM, if total basic employment is 128,500 and total employment is 350.000? 20) What does the EBM indicate in question 19? 21) Based on question 19, If the population is 798,112, what is the PER. 22) What does the PER indicate?
You are brand manager at Arrow Cosmetics and responsible for Silkskin body lotion. Silkskin's annual contribution is currently $2.1 million. The R&D department has just developed a new Aloe Vera-based body lotion formula. You must decide whether you want to change the formula for the Silkskin lotion or stay with the old one . The variable costs will be slightly higher for the new formula ($7.00 per bottle), but you guess that an increase in sales might compensate for the higher costs. You plan on selling the new Silkskinfor $ 12.00 per bottle. You can imagine three annual sales scenarios: 600,000 , 300,000 and 200,000 units sold, which you estimate the chances to be 30, 40, and .30, respectively. 1. Under which scenario (s) would you introduce the new Silkskin? 2. Would you introduce the new formula? 3.Imagine a market research firm that provides perfect information. In other words , if the firm tells you that annual sales will be "x", then sales will in fact be x. What is…
Sales for the last quarter of the year were good, with tops sales at 3,400 units and pants sales at 3,200 units. Demand for the first quarter sales of next year is expected to decline by 8%. What is your forecast for the demand of tops and pants? Tops Sales Forecast: 0 ▲ ▼ Pants Sales Forecast: 0 ▲ ▼ Is there anything you could do to help minimize the effect of the projected decline in demand on sales?
Golden Company is in the period of budgeting for 2022. The Sales manager forecasted the number of units to be sold as 30000 units and determined the selling price as 40 OMR per unit. The management revised these estimates with a 10 % decrease in selling price and with a 20 % increase in the number of units sold. According to these estimates, which of the following is revised Sales (OMR)? Select one: O a. 1050000 Ob. 1296000 Oc 900000 O d. 675000
A restaurant owner is showing a positive operating income in 9 of 12 months of operation and is considering whether to close during the three months of the off season. Given the following information for the three months of the offseason, what would be your recommendation? Sales revenue= 22,000, variable costs=16,500, fixed costs=15,000. Operating income is negative and my recommendation is be closing Operating income is positive and my recommendation is not closing My recommendation is closing due to the close-down and start-up costs My recommendation is not closing despite the loss None of the above

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