ase study #1: It does look good, said Amanda, the restaurant manager at Emils Italian Kitchen. Very fresh. And its consistent, replied Todd, the sales manager for Brothers Ready Produce. Todd and Amana were discussing a new processed lettuce blend that Brothers Ready Produce was offering for sale. The blend of arugula, red cabbage, romaine, and iceberg lettuce came packaged in two-pound bags and was ready to serve. Its formulated to complement Italian foods, continued Todd. And with as much salad as you serve at Emils, youll save a ton of labor. I agree that we would save significantly in labor, replied Amanda, but what does it cost per serving?

1. Labor-saving preprocessed foods such as fruits, vegetables, and meats do typically reduce labor costs. In what other areas will cost reductions occur when a restaurant manager buys preprocessed foods?

2. What procedure should Amanda use to determine if the increased as-purchased (AP) cost per serving of salad is more than the labor and any other savings she will incur by purchasing Todds preprocessed salad blend?