This project is way over budget, said the owner of Vernon's Restaurant and Banquet Hall, speaking...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
"This project is way over budget," said the owner of Vernon's Restaurant and Banquet Hall, speaking to the kitchen designer. "I wonder if we can rethink our equipment needs," he continued. "We're planning to use top-of-the-line equipment, but maybe we can back off from that standard. Is there some equipment we can buy now, and some later? Can we lease or buy used equipment to save money? Can you work out some deals with your equipment suppliers? Maybe if we purchase all or most equipment from the same vendor, they'll lower their costs." "There may be good ways to reduce costs," said the designer. "However, you're making money on the production of food, and that's not the place to cut corners." 1. What advice would you give the restaurant's planning team about ways to reduce kitchen equipment acquisition costs? 2. Is it a good idea to assume that the restaurant will be a success "from the day the door opens" so profits can be used to pay the equipment and other opening costs? Why or why not? "This project is way over budget," said the owner of Vernon's Restaurant and Banquet Hall, speaking to the kitchen designer. "I wonder if we can rethink our equipment needs," he continued. "We're planning to use top-of-the-line equipment, but maybe we can back off from that standard. Is there some equipment we can buy now, and some later? Can we lease or buy used equipment to save money? Can you work out some deals with your equipment suppliers? Maybe if we purchase all or most equipment from the same vendor, they'll lower their costs." "There may be good ways to reduce costs," said the designer. "However, you're making money on the production of food, and that's not the place to cut corners." 1. What advice would you give the restaurant's planning team about ways to reduce kitchen equipment acquisition costs? 2. Is it a good idea to assume that the restaurant will be a success "from the day the door opens" so profits can be used to pay the equipment and other opening costs? Why or why not?
Expert Answer:
Answer rating: 100% (QA)
1 To reduce kitchen equipment acquisition costs the restaurants planning team could consider a ... View the full answer
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
Posted Date:
Students also viewed these organizational behavior questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
On August 31, 2014, Nina Herrera borrowed $5,000 from Second State Bank. Herrera signed a note payable, promising to pay the bank principal plus interest on August 31, 2015. The interest rate on the...
-
Milden Company is a merchandiser that plans to sell 12,000 units during the next quarter at a selling price of $100 per unit. The company also gathered the following cost estimates for the next...
-
Partial balance sheet data for Upper Crust Company at August 31 are as follows: Prepare the Current assets section of Upper Crust Companys balance sheet at August 31. Finished goods inventory Prepaid...
-
What are the advantages of gear drive over other drives?
-
At the end of 2014, Endrun Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2015, the company learns that its receivable from Marcello is not...
-
You are a Human Resource Manager, and your company is expanding globally to Japan from the US. You have been tasked to create a presentation to present to the Executive Leadership Team that reviews...
-
What is Jacqueline and Keiths monthly mortgage payment prior to the refinancing?
-
A thrill-seeker (mass 80.0 kg) bungee jumps off a bridge spanning a 110 m deep river canyon. After they have fallen 70.0 m the cord begins stretching, bringing them to rest 10.0 m above the river. a....
-
Required information [The following information applies to the questions displayed below.] At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Cash...
-
Analyze the components of an effective email subject line. What are the best practices for crafting subject lines that grab attention and accurately reflect the content of the email?
-
Explain why many countries located in hot and tropical climates currently have extractive institutions like weak property rights, limited information, and low social mobility according to Acemoglu,...
-
Discuss why the remote/rural economy doesn't produce enough jobs for residents. Why does most of the cash generated in remote areas never influence the local economy?
-
A developer puts in 5% equity and a fund puts in 95% of the equity for a development deal. Cash flow is to be distributed with the following order of priorities (e.g., "the waterfall"): Preferred...
-
In contrast to C=C double bonds, rotation around C-C single bonds is extremely fast. The energy barrier to rotation is small (this rotation does not break a bond). The cis and trans isomers of...
-
Compile data on consumption and expenditures for the following categories in 30 different countries: (1) food and beverages, (2) clothing and footwear, (3) housing and home operations, (4) household...
-
At the end of 2010, Hender Chemicals began to implement an environmental quality management program. As a first step, it identified the following costs in its accounting records as environmentally...
-
Refer to Exercise 21-5. Assume the economic lot size for small casings is 30,000 and that of the large casings is 10,000. Wadley Manufacturing sells an average of 590 small casings per workday and an...
-
One reason for inventory is to prevent shutdowns. How does the JIT approach to inventory management deal with this potential problem?
-
Liquid argon has a dielectric constant of 1. 5 . What is the speed of an electromagnetic wave pulse through this medium?
-
What would be the length of a half-wave antenna for a radio station that emits its signal at \(90.5 \mathrm{MHz}\) ?
-
Full-body scanners at airports are sometimes referred to as millimeter-wave scanners and sometimes as terahertz scanners. Does this make sense?
Study smarter with the SolutionInn App