Question: Based on the information in scenario 2, classify the costs. Calculate the contribution margins for both wine and food. Their contributions margins are not equal.


Based on the information in scenario 2, classify the costs. Calculate the contribution margins for both wine and food. Their contributions margins are not equal. What could we do to make them equal? If we move forward and hire Jane as a salaried employee from Scenario 1, apply the information in Scenario 2 and determine what would the overall fixed cost be that we need to cover for the original location? Using the facts of the case and the information in scenario two, what are your recommendations for increasing profits without adding locations? Please keep in mind there is a 10-table capacity, the other constraint is the hours open. The owners do not have any market research that indicated opening more hours would be beneficial. Given all the information in the case and scenario 1, Jane would make about $2,000 less annually if she goes salary. What are the key elements to Jane's decision making from her point of view
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