Letuscaters 2011 P&L financial statement via excel spreadsheet provided. Note that this year's sales exceeded 800,000. Let
Question:
Letuscaters 2011 P&L financial statement via excel spreadsheet provided. Note that this year's sales exceeded 800,000. Let x= catering sales and our revenue equation is R(x)=mrx where slope of the revenue equations is mr. Plug in the numbers and you get 89,938.01=mr(811,458.75) then solve for mr=89,238.01/811,458.75=.11 or 11%. This was commission received from the restaurant for each order we gave them.1. You are calculating the cost function for the business in 2011. Just a reminder the cost function is defined as C(x)=mcx+b where the slope mc is the variable cost and b is the fixed cost. Group all the expenses in either a fixed cost or variable cost bucket. A cost is variable if it depends on catering sales and if it does not depend on our catering sales then it is not a fixed cost.2. From the model calculate the break0even sales number per month. Note the numbers in the spreadsheet are for the complete year.3. Calculate the profit function. Also as a business owner u want to make more profit. ways to do that decrease cost with same revenue or increase the revenue more than you increase cost. using the cost, revenue sand profit equation, come up with ideas to increase profit. Upto five ideas accepted. Must present how much cost adds to the model and how much revenue must this sales person bring into the company to increase profits. So, assume a salary you will pay this person using your equations to figure out how much extra "catering sales" your new employee must bring in to pay for themselves. Show work and calculations.1. Increase revenue by hiring a salesperson. I will pay them 3000 per month. (then show your calculations using this 3000$ cost on how much catering sales the salesperson must bring in to cover their cost).
The excel spreadsheet :
Probability and Statistical Inference
ISBN: 978-0321923271
9th edition
Authors: Robert V. Hogg, Elliot Tanis, Dale Zimmerman