Assume the MOH rate is 50% of your DL cost, and within that, fixed MOH is...

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Assume the MOH rate is 50% of your DL cost, and within that, fixed MOH is 80% of total MOH, with present capacity of 5,000 units. (Hint: calculate fixed MOH with this info.) Now, consult the menu of two restaurants that feature a food item as similar as possible to your product, and indicate the prices you found at each outlet. (2) Given your product's cost structure (DM+ DL + MOH) and the published restaurant pricing, would you be able to make a profit on your product? Why or why not? (3) A quick search revealed that some restaurants markup their food product cost by 300%. If you did that with your product cost, what would be your item's price? Would your price be competitive with the restaurants you found? Would you need to operate in a different market? (4) List the factors that contribute to a restaurant being profitable on these same menu items with their published prices. (The answers here aren't from restaurant science but concepts from business you've learned in this class or complementary courses.) (5) You need to achieve a target profit of $2,000. Given your present cost structure, and a 300% markup on product cost as your price, how many menu items would you need to sell to break- even? Comment on the feasibility of this number of unit sales given your present "facility." Assume the MOH rate is 50% of your DL cost, and within that, fixed MOH is 80% of total MOH, with present capacity of 5,000 units. (Hint: calculate fixed MOH with this info.) Now, consult the menu of two restaurants that feature a food item as similar as possible to your product, and indicate the prices you found at each outlet. (2) Given your product's cost structure (DM+ DL + MOH) and the published restaurant pricing, would you be able to make a profit on your product? Why or why not? (3) A quick search revealed that some restaurants markup their food product cost by 300%. If you did that with your product cost, what would be your item's price? Would your price be competitive with the restaurants you found? Would you need to operate in a different market? (4) List the factors that contribute to a restaurant being profitable on these same menu items with their published prices. (The answers here aren't from restaurant science but concepts from business you've learned in this class or complementary courses.) (5) You need to achieve a target profit of $2,000. Given your present cost structure, and a 300% markup on product cost as your price, how many menu items would you need to sell to break- even? Comment on the feasibility of this number of unit sales given your present "facility."

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1 Assume MOH rate is 50 of DL cost DL cost x MOH rate 05x Total MOH 05x Fixed MOH 08 Total MOH 08 05... View the full answer