Question: Could you help me ?! It is that when making the graph in Excel, total income and total costs never intersect and I do not

Could you help me ?! It is that when making the graph in Excel, total income and total costs never intersect and I do not know what I am doing wrong, please help me.



  1. I have to perform the profit optimization analysis using the equilibrium point (PE) solution with the following data:

(1) fixed costs $ 7,893,

(2) price $ 5.00 and

(3) variable cost per unit $ 1.3.



I sent him all the instructions given by the teacher. The table is what I have done, any criticism you can give me about it I will appreciate it, although the reason why I write is for

the profit optimization analysis using the equilibrium point (PE) solution with the following data:

(1) fixed costs $ 7,893,

(2) price $ 5.00 and

(3) variable cost per unit $ 1.3.



In Topic 1: Quantitative Methods of Module 1 the importance of using the quantitative analysis approach and the application of the seven steps to follow was discussed. Also, as part of the topic, the use of equilibrium point (PE) solution was discussed. In this work the student will create a real modeling scenario of a hypothetical situation of a fast food restaurant and will apply the use of the equilibrium point solution to it.


Instructions:

  1. Using the seven steps of the quantitative analysis approach, model a profit maximization problem in a fast food restaurant.
  2. Using your creativity you are going to give it a name and location.
  3. You must explain each step using the Table: Modeled in a Real Scenario included below, as close to a real situation.


  1. Also perform the profit optimization analysis using the equilibrium point (PE) solution with the following data:

(1) fixed costs $ 7,893,

(2) price $ 5.00 and

(3) variable cost per unit $ 1.3. The student will assume that this data comes from the company.


Modeling on a Real Stage:

"Here, Better than in Front Restaurant"


He passed Description
Definition of the problem

Incorporate 100% organic products in order to establish a new menu of healthy, organic, and vegan dishes.



Development of a Model
  • Add 100% organic products to our inventory and thus be able to create and establish a new and exclusive menu that will be called, "Menu Fit" that will have a total of 15 different dishes that will be classified as follows: 5 organic dishes, 5 healthy dishes and 5 vegan dishes. By incorporating a new inventory of 100% organic products, we will provide consumers with a variety of healthy beverage and dessert options that will be part of our new menu.


  • Advertise a job offer for the chef position specializing in the creation of healthy dishes and desserts, in as many external recruitment sources as possible. Also, employees will be communicated about this vacancy so they can be our internal recruiting source.


  • In the final stage of the development of the new dishes, over a period of six months, we will have the collaboration of a high-level chef to evaluate and select the 30 best dishes created by our new chef who specializes in healthy dishes and desserts.



Data collection
  • Find different options of 100% organic products, evaluate their suppliers and their prices in order to expand our inventory and dishes with healthier options.


  • Interview all chefs and / or specialists in healthy dishes, who are interested in the vacancy.


  • Evaluate with our new chef, different recipes and vegan, healthy and organic dishes that we can add to the new "Menu Fit".



Development of a solution
  • The supplier that provides the best variety of 100% organic products with the lowest prices will be selected .


  • With the collaboration and approval of the master chef who was hired for six months for this purpose, we will be selecting the best 30 dishes and desserts that our chef in charge of the fit menu prepared. 15 recipes of main dishes and 5 recipes of desserts will be saved, which will not be presented to the public in case any of the presented dishes is not accepted, to be presented later or in case of any eventuality.


  • The goal is to present the new 15 healthy dishes, desserts and drinks from the Fit Menu, in August 2022.



Test the solution

Once the "Menu Fit" dishes are selected and established by our chef and the master chef, the new menu will be presented to the clients. They will be granted a 75% discount on the purchase of these dishes, in order to allow us to collect their opinions and criticisms through surveys that will be delivered by the waiters in order to analyze the acceptance of each dish, drink and new fit menu post. In the event that our customers' purchase exceeds $ 100, they will be given free samples of two of the new dishes for the purpose of allowing us to survey their opinions. If necessary, the dishes will be adjusted and / or replaced for greater acceptance of the menu.



Analysis of the results
Implementation


PE = Fixed Cost

Price - Variable Cost


PE = $ 7,893

$ 5.00 - $ 1.3


PE = $ 7,893

$ 3.7


PE units = 2,133 units.



PE in $ = 2,133 x $ 5.00 = $ 10,665




Total Income = Price x Q Total Cost = Fixed Cost + Variable Cost * Q

Total Income = $ 5 x 0 = 0 Total Cost = 7893 + 1.3 * 0 = 7893

Total Income = $ 5 x 500 = 2500 Total Cost = 7893 + 1.3 * 500 = 8543

Total Income = $ 5 x 1000 = 5000 Total Cost = 7893 + 1.3 * 1000 = 9193

Total Income = $ 5 x 1500 = 7500 Total Cost = 7893 + 1.3 * 1500 = 9843



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