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ANALYZING MANAGERIAL DECISIONS: Tipping in Restaurants

In most restaurants, waiters receive a large portion

of their compensation through tips from customers.

Generally, the size of the tip is decided by the customer.

However, many restaurants require a 15 percent

tip for parties of eight or more. Using the concepts

from this chapter, discuss (a) why the practice

of tipping has emerged as a major method of compensating

the wait staff, (b) why the customer typically

decides on the amount of the tip, and (c) why

restaurants require tips from large parties.

All assignments must be completed as Word documents. If you do not have Word you

can use Microsoft WordPad and use the rich text format (.rtf extension)

All assignments must be prepared in the APA format, including references.

Cover page.Use a single cover page that contains the title of the assignment and

your name

.

Margins.All page margins should be the default margins for your word processing

program. Use only the LEFT margin justification setting.

Page numbering.Please use page numbering for all pages except the cover page.

Spacing/Font.All papers should be single spacedonly (this includes spacing between

paragraphs) and a 12 point font

Direct quotes/ paraphrasing.Direct quotes and paraphrasing MUST be referenced

and cited using APAguidelines. Although there is no limit on how many citations are in

the paper, there is a limit of 15% for quotations and 25% for unoriginal wording for this

course. When more than one quarter of a paper seems to be unoriginal, it usually

indicates a problem. Even if sources are properly cited and some of the words are

changed, it raises the question of how much original thinking went into the paper. There

is a big difference between starting with a blank page and writing your own thoughts,

and building the paper around quotes, paraphrased sources, and the altered wording of

another author. You are encouraged to use textbook concepts as you attempt to explain

in your own words the answers to the assignments rather than relying heavily on quoted

material. Try to think about how you would explain your answer to someone who has not taken a managerial economics class. High scores on the originality report in Turnitin.com are not just a result of plagiarism; they can also result from an incorrect quotation/citation

methodology or from using words that have been rearranged from your sources. If you

use someone else’s work you must cite and reference it appropriately.

References

. You must include a separate References page in APA format with each

paper. Any source that is used to develop your paper must be included in this section.