Take your time. You have a restaurant and can seat up to 25 people. The maximum revenue that you can produce in an hour is $1250 (this is a function of seating, service and kitchen capacity) Your Revenue function = MaxRevenue*(1-e(-.3*(s-so))) That is, you have an exponential growth function in revenue, with your Max Revenue as an asymptote. .3 is a measure of your operational efficiency (seating, service, kitchen). S is the number of SEATS you are filling in an hour. So s-so is the total seats filled. Build your excel model like the one we completed on Monday, 2/5. Your seats are the choice variable, and your revenue is the output. calculate the marginal contribution of each seat using your model. What is the marginal contribution of filling the 13th seat? .73% O 73% 1.15% 115%
Take your time. You have a restaurant and can seat up to 25 people. The maximum revenue that you can produce in an hour is $1250 (this is a function of seating, service and kitchen capacity) Your Revenue function = MaxRevenue*(1-e(-.3*(s-so))) That is, you have an exponential growth function in revenue, with your Max Revenue as an asymptote. .3 is a measure of your operational efficiency (seating, service, kitchen). S is the number of SEATS you are filling in an hour. So s-so is the total seats filled. Build your excel model like the one we completed on Monday, 2/5. Your seats are the choice variable, and your revenue is the output. calculate the marginal contribution of each seat using your model. What is the marginal contribution of filling the 13th seat? .73% O 73% 1.15% 115%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:Take your time. You have a restaurant and can seat up to 25 people.
The maximum revenue that you can produce in an hour is $1250 (this is a function of seating, service and kitchen capacity)
Your Revenue function = MaxRevenue*(1-e(-.3*(s-so)))
That is, you have an exponential growth function in revenue, with your Max Revenue as an asymptote. .3 is a measure of your operational
efficiency (seating, service, kitchen). S is the number of SEATS you are filling in an hour. So s-so is the total seats filled.
Build your excel model like the one we completed on Monday, 2/5.
Your seats are the choice variable, and your revenue is the output. calculate the marginal contribution of each seat using your model. What is
the marginal contribution of filling the 13th seat?
.73%
O 73%
1.15%
115%
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education