Principles Of Economics A Streamlined Approach 3rd Edition Robert Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz - Solutions

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10. Explain several significant effects of improper receiving controls.
9. How can managers use computers to establish control over food purchasing?
8. Assume you have been hired as the purchasing steward of a new restaurant located in an area that is completely unfamiliar to you. You have never lived here before, and you have no friends or family in the area.How would you obtain information on sources of supply for perishable and nonperishable
7. The Last Chance Restaurant uses the perpetual order method. One of the items in the inventory is canned green beans. Determine reorder point and reorder quantity, given the following:a. Normal usage is two cans per day.b. It takes five days to get delivery of the item.c. Par stock is 29 cans.d.
6. The Midtown Restaurant uses the perpetual order method. One of the items to be ordered is canned pears. Determine reorder point and reorder quantity, given the following:a. Normal usage is 21 cans per week.b. It takes four days to get delivery of the item.c. Par stock is set at 42 cans.d. Cans
5. Harvey ’ s Restaurant uses the periodic order method, ordering once a month. Determine the proper quantity of tomato juice to order today, given the following:a. Normal usage is one case of 12 cans per week.b. Quantity on hand is 6 cans.c. Desired ending inventory is 18 cans.d. The coming
4. Nestor ’ s Restaurant uses the periodic order method, placing orders every two weeks. Determine the quantity of canned peaches to order today, given the following:a. Normal usage is one case of 24 cans per week.b. Quantity on hand is 10 cans.c. Desired ending inventory is 16 cans.
3. Write a one - paragraph explanation of why the standard purchase specifications for eggs used for producing a breakfast menu would differ from the specifications for eggs used for producing baked goods.
2. Write a standard purchase specification for each of the following:a. Leg of lambb. Fresh tomatoesc. No. 10 cans of green beans
1. List 10 items considered perishable and 10 considered nonperishable in the foodservice industry.
Exercise 3.2 Using the Excel spreadsheet:1. Assume that variable costs are not controlled and that budgeted costs of sales for food and beverage increase to $600,000 and total sales are as budgeted ($1,665,472.20). Calculate profit for Barnaby ’ s Hideaway. All other costs remain the same.2.
Exercise 3.1 The budgeted income statement for Barnaby ’ s Hideaway is produced on your Excel spreadsheet. Assume that the following constitute the fixed and variable costs for the upcoming year:Fixed Costs for the Upcoming Year 1. 40 percent of salaries and wages 2. Employee benefits — 40
13. Define each of the key terms in this chapter.
12. The following information is from the records of Daphne ’ s Restaurant:Sales $800,000 Variable cost $342,400 Fixed cost $345,600 Assume that sales volume equals 40,000 covers:a. Calculate profit.b. Calculate average dollar sale.c. Calculate dollar sales required to earn a profit of $125,000,
11. The owner of the Barn Lodge Restaurant estimates that fixed costs for the coming year will be $360,000. Based on his investment in the business, he wants a profit of $120,000 for the year. Experience has shown that the average check is $12.00.a. If total variable cost is $720,000, what level of
10. Given the following information, find profit:a. Fixed costs, $82,449.40; total sales, $167,543.20; variable cost,$55,629.60b. Variable rate, .4; number of customers, 26,412; fixed costs,$193,764.40; sales price per unit, $17.60c. Total sales, $190,830.66; variable cost per unit, $5.64; fixed
9. Given the following information, find fixed costs:a. Total sales, $104,672; profit, $18,000; variable rate, .42b. Profit, $12,000; number of customers, 32,392; variable cost per unit, $4.63; sales price per unit, $10.34c. Sales price per unit, $14.60; profit, $34,000; number of customers,
8. Given the following information, find number of customers:a. Fixed costs, $58,922; profit, $9,838; contribution margin per unit,$3.82b. Profit, $33,603; sales price per unit, $17.00; fixed costs, $97,197; contribution rate, .6c. Variable cost per unit, $5.30; profit equal to 18 percent of
7. Given the following information, find dollar sales:a. Fixed costs, $60,000; profit, $18,000; sales price per unit, $8.00; variable cost per unit, $5.00b. Variable rate, .45; profit, $21,578.10; fixed costs, $58,382c. Sales price per unit, $16.60; profit, $21,220; contribution margin,$9.29; fixed
6. Given the following information, find break - even point in Number of Customers:a. Fixed costs, $113,231.64; contribution margin, $2.28b. Sales price per unit, $17.22; fixed costs, $215,035.68; variable cost per unit, $6.98c. Contribution rate, .6; sales price per unit, $18.20; fixed costs,
5. Given the following information, find break - even point in dollar sales:a. Fixed costs, $48,337.80; contribution rate, .6b. Variable rate, .45; fixed costs, $155,410.31c. Variable cost per unit, $5.85; sales price per unit, $17.40; fixed costs,$164,065.60
4. Given the following information, find contribution rate:a. Sales price per unit, $18.50; contribution margin, $10.08b. Sales price per unit, $17.50; variable cost per unit, $6.95c. Total sales, $64,726; total variable cost, $40,130.12d. Sales price per unit, $16.50; profit, $33,381.80; number of
3. Given the following information, find variable rate:a. Sales price per unit, $19.25; variable cost per unit, $6.70b. Total sales, $164,328; total variable cost, $72,304.32c. Sales price per unit, $18.80; contribution margin, $10.72d. Sales price per unit, $16.37; total fixed costs, $142,408;
2. Given the following information, find contribution margin:a. Average sales price per unit, $13.22; average variable cost per unit,$5.78b. Average sales price per unit, $14.50; average variable rate, .36c. Average sales price per unit, $16.20; average contribution rate, .55d. Average variable
1. Given the following information, determine total dollar sales:a. Cost of sales, $46,500; cost of labor, $33,247; cost of overhead, $75,883;profit, $3,129.b. Cost of sales, $51,259; cost of labor, $77,351; cost of overhead, $42,248;loss, $41,167.
2.2 Follow the instructions on the disc for this exercise.
7. Interest and depreciation will remain the same.Prepare a budget for Barnaby ’ s Hideaway for the coming year, using Figure 2.3 in the text as a model for your budget.
6. Occupancy costs will increase by $2,000.
5. Other controllable costs will increase by $6,500.
4. The cost of employee benefits will increase, but will continue to be the same percentage of salaries and wages.
3. Salaries and wages will increase by 4 percent.
2. Food and beverage cost percentages will remain the same.
1. Both food and beverage sales are expected to increase by 5 percent.
2.1 Bring up the income statement for Barnaby ’ s Hideaway on your Excel spreadsheet.It is listed on the disk as Exercise 2.1.The following changes are anticipated in the coming year:
15. Define each of the key terms in this chapter.
14. Referring to Question 13, assume that the operating budget you prepared for the upcoming year has been adopted. After the first six months of the year, financial records reveal the following:a. Food sales have increased by 12 percent rather than by the 10 percent anticipated.b. Beverage sales
13. In the current year, the manager of the Downtowner Restaurant has been following the operating budget reproduced here:For the coming year, the following changes are expected:a. Food sales will increase by 10 percent.b. Beverage sales will increase by 6 percent.c. Food cost percent and beverage
12. The following information has been prepared by the manager of the Market Restaurant. It represents his best estimates of sales and various costs for the coming year. Using this information, prepare an operating budget for the Market Restaurant for the coming year, following the illustration
11. Define standard procedures, and give two examples from your own experience.
10. The new manager of Jill ’ s Joint has decided that all employees should be searched before they leave the premises each day because she believes this will reduce the problem of employee theft. Discuss the possible costs and potential benefits the manager should consider before instituting
9. One of the items on the menu in the Central Restaurant is chopped steak. Each cook has his or her own idea about what a chopped steak is,and each prepares it differently. Using the four steps in the control process as the basis for your response, explain how a new manager might eliminate this
8. Imagine that you are the manager of a fine - dining restaurant. You are faced with the problem of a server who refuses to follow the service standards and techniques established by the owner. It is apparent to you that the server ’ s techniques result in faster service, but they are clearly
7. What is the purpose of cost control? Of sales control?
6. How can budgets be used as control devices in food and beverage operations?
5. From your own experience, cite an instance in which a manager ’ s inconsistency in setting examples or giving directions has led to confusion in day - to - day operations.
4. The manager of Phil ’ s Cocktail Lounge has purchased and directed bartenders to use a device that automatically measures the quantity of any alcoholic beverage poured. The bartenders were formerly permitted to mix drinks without measuring. What positive and negative effects do you think this
3. Is discipline the only control technique that has negative implications?Why?
2. Would the quality standards for workers in a fine - dining restaurant be the same as those for workers in a school cafeteria? Why?
1. Compare the quality standards that may be used in a school cafeteria with those that may be used in a fine - dining restaurant for one standard portion of roast turkey with dressing.
1.1 Complete the income statement for Barnaby ’ s Hideaway by inserting the following figures in the appropriate places. Print your completed income statement.This will give you printed information for completing Exercises 1.2, 1.3, and 1.4.
16. Define the key terms in this chapter.
15. The financial records of the Colonial Restaurant reveal the following figures for the year ending December 31, 20XX:Depreciation, $25,000 Food sales, $375,000 Cost of beverages sold, $30,000 Other controllable expenses, $60,000 Salaries and wages, $130,000 Beverage sales, $125,000 Employee
14. Given the information about Sally ’ s Restaurant identified in Questions 12 and 13, assume the restaurant had 85,629 customers per year and gross sales were $352,783.40.a. Calculate the average check.b. Calculate sales per seat for the year.
13. Use the information about Sally ’ s Restaurant identified in Question 12 to complete the following:a. Calculate the average check.b. Calculate the turnover for the three - hour period if there are 65 seats in the restaurant.
12. The following table indicates the number of covers served and the gross sales per server for one three - hour period in Sally ’ s Restaurant.Determine: (a) the average number of covers served per hour per server, and (b) the average sale per server for the three - hour period.Server Covers
11. Calculate the average check from the following data:a. Sales, $1,000.00; Number of customers, 125b. Sales, $1,300.00; Number of customers, 158c. Sales, $8,720.53; Number of customers, 976
10. Sales records for a luncheon in the Newmarket Restaurant for a recent week were:Item A, 196 Item B, 72 Item C, 142 Item D, 24 Item E, 112 Item F, 224 Item G, 162 Given this information, calculate the sales mix.
9. Joe ’ s Downtown Restaurant purchases domestic red wine at $9.20 per bottle. Each bottle contains 3 liters, the equivalent of 101 ounces. The wine is served in 5 - ounce glasses, and management allows for 1 ounce of spillage per 3 - liter bottle.a. What is the average unit cost per drink?b.
8. At the Loner Inn, total fixed costs for October were $28,422.80. In that month, 14,228 covers were served.a. What was the fixed cost per cover for October?b. Assume that fixed costs will increase by 2 percent in November.Determine fixed cost per cover if the number of covers decreases by 10
7. The present cost to Lil ’ s Restaurant for one à la carte steak is $3.20. This is 40 percent of the menu sales price.a. What is the present sales price?b. At an annual inflation rate of 5 percent, what is this steak likely to cost one year from today?c. Using the cost calculated in (b) above,
6. Write a short paragraph illustrating why a comparison of raw dollar costs in two restaurants would not be meaningful, but a comparison of the cost percents for food, beverages, labor, and overhead might be.
5. List three examples of foodservice costs that are variable. Are they controllable?Explain your answers.
4. List three examples of foodservice costs that are fixed. Are they controllable?Explain your answers.
3. Calculate sales, given the following figures for cost percent and cost:a. Cost percent, 30.0%; Cost, $90.00b. Cost percent, 25.0%; Cost, $500.00c. Cost percent, 33.3%; Cost, $1,000.00d. Cost percent, 27.3%; Cost, $1,300.40e. Cost percent, 24.5%; Cost, $88.20f. Cost percent, 34.8%; Cost, $1,113.60
2. Calculate cost, given the following figures for cost percent and sales:a. Cost percent, 28.0%; Sales, $500.00b. Cost percent, 34.5%; Sales, $2,400.00c. Cost percent, 24.8%; Sales, $225.00d. Cost percent, 31.6%; Sales, $1,065.00e. Cost percent, 29.7%; Sales, $790.00f. Cost percent, 21.2%; Sales,
1. Given the following information, calculate cost percentages. Round your answers to the nearest tenth of a percent.a. Cost, $200.00; Sales, $500.00b. Cost, $150.00; Sales, $500.00c. Cost, $178.50; Sales, $700.00d. Cost, $216.80; Sales, $800.00e. Cost, $127.80; Sales, $450.00f. Cost, $610.00;
If the government follows an easy monetary policy and the exchange rate is flexible, which of the following will likely be the result? (LO4)a. A falling real interest rate but higher net exports.b. A higher real interest rate but lower net exports.c. A strong currency that helps stimulate
The annual demand for and supply of shekels in the foreign exchange market is as given in Problem 9.The shekel is fixed at 0.30 dollars per shekel. The country’s international reserves are $600. Foreign financial investors hold checking accounts in the country in the amount of 5,000 shekels.
The demand for and supply of shekels in the foreign exchange market are Demand 5 30,000 2 8,000e, Supply 5 25,000 1 12,000e, where the nominal exchange rate is expressed as U.S.dollars per shekel. (LO3, LO5)a. What is the fundamental value of the shekel?b. The shekel is fixed at 0.30 U.S. dollars.
Consider an Apple iPod that costs $240. (LO3)a. If the euro–dollar exchange rate is 1 euro per dollar, so that it costs a European 1 euro to buy a dollar, how much will the iPod cost in France?b. If the euro–dollar exchange rate falls to 0.8 euro per dollar, how much will the iPod cost in
Suppose a French bottle of champagne costs 20 euros.(LO3)a. If the euro–dollar exchange rate is 0.8 euro per dollar, so that a dollar can buy 0.8 euro, how much will the champagne cost in the United States?b. If the euro–dollar exchange rate rises to 1 euro per dollar, how much will the
How would each of the following be likely to affect the value of the dollar, all else being equal? Explain. (LO3)a. U.S. stocks are perceived as having become much riskier financial investments.b. European computer firms switch from U.S.-produced software to software produced in India, Israel, and
a. Gold is $350 per ounce in the United States and 2,800 pesos per ounce in Mexico. What nominal exchange rate between U.S. dollars and Mexican pesos is implied by the PPP theory? (LO2)b. Mexico experiences inflation so that the price of gold rises to 4,200 pesos per ounce. Gold remains $350 per
The demand for U.S.-made cars in Japan is given by Japanese demand 5 10,000 2 0.001(Price of U.S. cars in yen).Similarly, the demand for Japanese-made cars in the United States is U.S. demand 5 30,000 2 0.2(Price of Japanese cars in dollars).The domestic price of a U.S.-made car is $20,000, and the
Blueland’s currency unit, the blue, was worth $1 (U.S.) last year and is worth 90 cents (U.S.)this year. Redland’s currency unit, the red, was worth 50 cents (U.S.) last year and is worth 45 cents (U.S.)this year.Find the percentage change from last year to this year in Blueland’s nominal
Using the data in Table 21.1, find the nominal exchange rate between the Mexican peso and the Japanese yen.Express in two ways. How do your answers change if the peso appreciates by 10 percent against the dollar while the value of the yen against the dollar remains unchanged? (LO1)
Would you expect the law of one price to apply to crude oil? To fresh milk? To taxi rides? To compact discs produced in different countries by local recording artists? Explain your answer in each case. (LO2)
Detail how exchange rates can be fixed.
An economy is initially in recession. Using the AD-AS diagram, show the process of adjustment (LO4)a. If the Fed responds by easing monetary policy(moving its reaction function down).b. If the Fed takes no action.What are the costs and benefits of each approach, in terms of output loss and
For each of the following, use an AD-AS diagram to show the short-run and long-run effects on output and inflation. Assume the economy starts in long-run equilibrium. (LO2)a. An increase in consumer confidence that leads to higher consumption spending.b. A reduction in taxes.c. An easing of
This problem asks you to trace out the adjustment of inflation when the economy starts with an output gap. Suppose that the economy’s aggregate demand curve is Y 5 1,000 2 1,000π, where Y is short-run equilibrium output and π is the inflation rate, measured as a decimal. Potential output Y*
An economy’s relationship between short-run equilibrium output and inflation (its aggregate demand curve)is described by the equation Y 5 13,000 2 20,000π.Initially, the inflation rate is 4 percent, or π 5 0.04.Potential output Y* equals 12,000. (LO2)a. Find the output in short-run
For the economy in Problem 1, suppose that potential output Y* 5 960.From the policy reaction function in the table in Problem 1, what can you infer about the Fed’s objective for the inflation rate in the long term? (LO1)
We have seen that short-run equilibrium output falls when the Fed raises the real interest rate. Suppose the relationship between short-run equilibrium output Y and the real interest rate r set by the Fed is given by Y 5 1,000 2 1,000r.Suppose also that the Fed’s reaction function is the one
State how each of the following affects the AD curve and explain: (LO1)a. An increase in government purchases.b. A cut in taxes.c. A decline in planned investment spending by firms.d. A decision by the Fed to lower the real interest rate at each level of inflation.
What two variables are related by the aggregate demand (AD) curve? Explain how the behavior of the Fed helps to determine the slope of this curve. List and discuss two other factors that lead the curve to have the slope that it does. (LO1)
Discuss the short-run and long-run effects of an anti-inflationary monetary policy
Analyze how the economy is impacted by aggregate spending shocks, inflation shocks, and shocks to potential output.
Supposing that the Fed follows the Taylor rule (The Economic Naturalist 19.6), find the real interest rate and the nominal interest rate that the Fed will set in each of the following situations: (LO5)a. Inflation of 4 percent and an expansionary gap equal to 1 percent of potential output.b.
An economy with a potential output Y* of 4,000 is described by the equation below: (LO5)Y 5 5,800 212,000ra. If real interest rate is 0.10 (10%), compute the numerical value for aggregate expenditure and output Y, and determine if the economy is at its potential or experiencing an output gap.b. If
An economy is described by the following information:(LO5)a. State the relationship between aggregate expenditure and output Y to the real interest rate r for this economy in the format of an equation. [Hint: it should follow the format Y 5 a 2 b(r)]b. Assuming that the real interest rate is 0.10
In August of 2015, the Chinese central bank decided to reduce China’s required reserve-deposit ratio from 18.5% to 18%. Assuming no change in the amount of cash held by the Chinese public, that commercial banks lend all their excess reserves, and that bank reserves was a constant 4,329 billion
Using a supply and demand graph of the market for money, show the effects on the nominal interest rate if the Fed takes the following monetary policy actions:(LO2, LO3)a. The Fed lowers the discount rate and increases discount lending.b. The Fed increases the reserve requirements for commercial
How would you expect each of the following to affect the economywide demand for U.S. money? Explain. (LO1)a. Competition among brokers forces down the commission charge for selling holdings of bonds or stocks.b. Grocery stores begin to accept credit cards in payment.c. Financial investors become
The following table shows Uma’s estimated annual benefits of holding different amounts of money: (LO1)a. How much money will Uma hold on average if the nominal interest rate is 9 percent? 5 percent? 3 percent? Assume that she wants her money holding to be a multiple of $100. (Hint: Make a table
During the heavy Christmas shopping season, sales of retail stores, online sales firms, and other merchants rise significantly. (LO1)a. What would you expect to happen to the money demand curve during the Christmas season? Show graphicallyb. If the Fed took no action, what would happen to nominal
Discuss to what extent monetary policymaking is an art or science.
Describe the unconventional monetary policy methods that the Fed can use when interest rates hit the zero lower bound.
Give three examples of automatic stabilizers of the economy. (LO8)
For each of these hyperbolized statements, identify the fiscal policy qualification to which it is related. (LO8)a. Fiscal policy is just as likely to impact a nation’s actual GDP as its potential GDP.b. Given the average duration of recent recessions, fiscal policy is destined to help that

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Principles Of Economics A Streamlined Approach 3rd Edition Robert Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz - Solutions

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