Changes Reduction in average selling price $2.00 Decrease in variable costs 5% Reduction in annual fixed costs $10,000 Original New Check average (selling price) $16.50 Variable cost per unit (guest) $5.60 Annual fixed costs $180,000 Based on your analysis, make a recommendation to the owner to either add or not add the low-cost lunch special. Explain your rationale based on the numbers and desired after-tax profit. Use everyday language that an owner with little accounting or finance experience would understand. Write your recommendation and explanation below in one paragraph.

Answer rating: 100% (QA)

Adding the lowcost lunch special might be profitable but careful analysis is needed Based on the num... View the full answer