On Tue, Sep 20, 2016 at 1:38 AM, kavneet kaur <[email protected]> wrote:

Analysis  ​​​​​​​​             (40 marks)

 

Food and Beverages at Southwestern University football games

 

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.