Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 8, Problem 2.1Q
Summary Introduction

Interpretation:  The co-ordinates need to be determined using Center of gravity method based on the given information.

Concept Introduction: The center of gravity method helps in determining the central location that will minimize the costs to the company.

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Menu Item Sales and Cost Data Taco Salad: Number Sold: 127; Item Cost: $0.71; Selling Price: $3.25 Lasagna: Number Sold: 48; Item Cost: $0.92; Selling Price: $4.67 Chicken: Number Sold: 31; Item Cost: $1.20; Selling Price: $3.00 Green Beans: Number Sold: 14; Item Cost: $0.20; Selling Price: $1.00 Corn: Number Sold: 13; Item Cost: $0.24; Selling Price: $1.00 Rice: Number Sold: 9;Item Cost: $0.13; Selling Price: $1.00 Menu Item Classification: Low contribution margin, low menu mix % DOG High contribution margin, low menu mix % PUZZLE Low contribution margin, high menu mix % PLOWHORSE High contribution margin, high menu mix o/o STAR QUESTION 1 Complete the menu analyses worksheet below. Calculations will be done using the information above. Restaurant: Date: MealPeriod: (A) ☐ (B) (C) (D) (E) (F) (G) (H) (1) (J) Menu Mix Popularity % Item Item Sold/(Menu Mix Menu Menu Item Food Menu Contribution Contribution Contribution Category Item Mix %): (B/K) Cost Selling Margin Price Margin (E-D)…
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