Analysis (40 marks)
ORDER A SIMILAR PAPER ON;TALENTEDESSAYWRITERS.COM
PLEASE READ THE CASE ENTITLED “FOOD
AND BEVERAGES AT SOUTHWESTERN UNIVERSITY FOOTBALL GAMES” AND PREPARE
A REPORT AS PER SUGGESTED FORMAT. IN SOME OF THE TABLES, AN EXAMPLE OF
COMPUTATION HAS BEEN SHOWN BUT YOU HAVE TO COMPLETE THE REMAINING SPACES FOR
OTHER ITEMS IN THE RELEVANT TABLES.
REQUIRED:
a) The total fixed cost per game
includes salaries, rental fees, and cost of the workers in the six booths. Based
on the data in the case, complete the following Table 1: (3 marks)
Table 1
|
Items
|
$
|
|
Salaries
|
|
|
Rental fees
|
|
|
Booth worker
wages
|
|
|
Total fixed cost
per game
|
|
b) Allocate the
total fixed cost to each food item as shown in the Table 2: (9 marks)
Table 2
|
Item
|
Percent revenue
|
Allocated fixed cost
|
|
Soft drink
|
25%
|
|
|
Coffee
|
|
|
|
Hot dogs
|
|
|
|
Hamburgers
|
|
|
|
Misc. snacks
|
|
|
c) Compute the break-even points
for each of these items and complete the Table 3: (9 marks)
Table 3
|
Item
|
Sellingprice
|
Var.cost
|
Contributionmargin
|
Percentrevenue
|
Allocatedfixed cost
|
Break evenvolume
|
|
Soft drink
|
$1.50
|
$0.75
|
$0.75
|
25%
|
$6,515
|
8686.67
|
|
Coffee
|
|
|
|
|
|
|
|
Hot dogs
|
|
|
|
|
|
|
|
Hamburgers
|
|
|
|
|
|
|
|
Misc. snacks
|
|
|
|
|
|
|
d) Determine the total sales for each item that is required to
break even, and show them in
Table 4: (9marks)
Table 4
|
Item
|
Selling price
|
Break even volume
|
Dollar volume of sales
|
|
Soft drink
|
$1.50
|
8686.67
|
$13,030.00
|
|
Coffee
|
|
|
|
|
Hot dogs
|
|
|
|
|
Hamburgers
|
|
|
|
|
Misc. snacks
|
|
|
|
|
Total
|
|
|
|
e) Write a brief report with your
comments for Dr. Starr for his next meeting. Also comment critically on
the assumptions and shortcomings of the decision based
on break-even analysis (200 words). (10 marks)
TASK 2:
2. Solving
Numerical Problems (Break-Even Analysis)
(30 marks)
Question 2.1
A group of students at State
University decided to put their education into practice by developing a
tutoring company for business students. While private tutoring was
offered, it was determined that group tutoring before tests in the large
statistics classes would be most beneficial. The students rented a room close
to campus for $300 for 3 hours. They developed handouts based on past tests,
and these handouts (including colour graphs) cost $5 each. The tutor was paid
$25 per hour, for a total of $75 for each tutoring session.
Required:
a) If students
are charged $20 to attend the session, how many students must enroll
for the company to break even?
b) A somewhat smaller room is
available for $200 for 3 hours. The company is considering this possibility.
How would this affect the break-even point?
Question 2.2
Zoe Garcia is the manager of
a small office support business that supplies
copying, binding, and other services for local companies.
Zoe must replace a worn-out copy machine that is used for
black and white copying. Two machines are being considered and
each of these has a monthly lease cost plus a cost for each page
that is copied. Machine 1 has a monthly lease cost
of $600, and there is a cost of $0.010 per
page copied. Machine 2 has a monthly lease cost of
$400, and there is a cost of $0.015 per page copied.
Customers are charged $0.05 per page for copies.
Required:
a) What is the break-even
point for each machine?
b) If Zoe expects to make 10,000
copies per month, then what would be the cost for each machine?
c) If Zoe expects to make 30,000
copies per month, then what would be the cost for each machine?
d) At what volume (the number of
copies) would the two machines have the same monthly cost? What would be the
total revenue for this number of copies?
Key Equations
• Profit = (Selling price per
unit) × (No. of units)–(Fixed cost)–(Variable cost per unit) ×
(No. of units)
• BEP = Fixed cost / (Selling
price per unit - Variable cost per unit)
• Break-even point in dollars
(BEP$) = Fixed cost + (Variable costs × BEP)
TASK 3
Paper Review
Report + Presentation
(30 marks)
This is an individual task
where you have to identify and download a journal article (or
paper) in the field of decision making , and do the following two
parts:
PART A: REPORT PREPARATION(20 marks)
You will need
to read this article thoroughly, and prepare a REPORT which should
include:
o Abstract
o Introduction
o Review methodology
o Key issues in the papers
(summarized under suitable headings or subheadings)
o Conclusions
o References (you should
read and cite a maximum of three more relevant papers in your
report).
Marking Criteria for
Part A (see Appendix 1)
Your report will be assessed on
the basis of the relevance of the paper to the
• Learning outcome 1 (i.e. evaluate
organisational decision making in a specific organisational environment).
• Learning outcome 2 (compare
and contrast a range of decision making models)
Part B: REPORT PRESENTATION (10 marks)
You will need to identify the
important points from your report and present them using PP
slides (10 to 12 pp slides)
Marking Criteria for Part B (see
Appendix 2)
You will be assessed on
the basis of
• Identified points from the
report
• Quality of PP slides
• Presentation style
• Q & A at the end of the
presentation.
ORDER A SIMILAR PAPER ON;TALENTEDESSAYWRITERS.COM
