Extending the previous exercise, in Worksheet 8.2 examine the effect if the cost increases by $0.50 per meal as a result of adding new kitchen capacity and staff or decreases by $0.50 as a result of spreading the fixed costs over more meals. Show the change from the current annual cost.

WORKSHEET 8.2 Winterville Meal Center Sensitivity Analysis: Planning Ratio and Cost of Meals Change Change Change From From From Facts Single Family Total Current Single Family Total Current Single Family Total Current Current Capacity Increased Capacity 100 Meal Utilization from 200 100 200 100 200 100 100 100 100 100 100 Facility Current Planning Ratio 70% 100% 70% 100% 70% 100% 90% 110% 90% 110% 90% 110% Planning Increment 10% 10% 10% 10% 10% 10% Current Cost Lower Cost per Meal Higher Cost per Meal Cost per Meal Meal Increment $7.00 $7.00 S0.50 $0.50 Solution Current Utilization Current Cost Annual Cost Anticipated Capacity Low Planning Ratio Meal Utilization Cost per Meal Annual Cost Anticipated Capacity Current Planning Ratio Meal Utilization Cost per Meal Annual Cost Anticipated Capacity High Planning Ratio Meal Utilization Cost per Meal Annualized Annual Cost WORKSHEET 8.2 Winterville Meal Center Sensitivity Analysis: Planning Ratio and Cost of Meals Change Change Change From From From Facts Single Family Total Current Single Family Total Current Single Family Total Current Current Capacity Increased Capacity 100 Meal Utilization from 200 100 200 100 200 100 100 100 100 100 100 Facility Current Planning Ratio 70% 100% 70% 100% 70% 100% 90% 110% 90% 110% 90% 110% Planning Increment 10% 10% 10% 10% 10% 10% Current Cost Lower Cost per Meal Higher Cost per Meal Cost per Meal Meal Increment $7.00 $7.00 S0.50 $0.50 Solution Current Utilization Current Cost Annual Cost Anticipated Capacity Low Planning Ratio Meal Utilization Cost per Meal Annual Cost Anticipated Capacity Current Planning Ratio Meal Utilization Cost per Meal Annual Cost Anticipated Capacity High Planning Ratio Meal Utilization Cost per Meal Annualized Annual Cost