Author Question: Which change in an item would cause its actualreturn on investment to exceed its originallyprojected ... (Read 26 times)

ssal · **on:** Aug 10, 2018

Which change in an item would cause its actualreturn on investment to exceed its originallyprojected ROI?

a. The item required extensive repairs after its purchase.
b. The item's yearly financial return wasunderestimated.
c. The item's life span was shorter than originallyprojected .
d. The item's installation costs were much higherthan expected.

Question 2

The manager of Sammy D's, a trendy restaurant popular with college students, has just learned from corporate headquarters that their actual food cost last month was 42.

According to records at the restaurant, the composite food cost for the same period was 36. This greatly concerns the manager, as the standard food cost for the operation is 33 -- and her annual bonus is based upon maintaining this food cost percentage. What steps should the manager take to resolve this discrepancy?

djofnc · **Reply #1 on:** Aug 10, 2018

Answer to Question 1

B

Answer to Question 2

The problem is rooted in operations and potentially the menu pricing structure. Since this is a chain operation, the manager will not be able to change pricing structure on own. Therefore, she should examine operations are standardized recipes being used, are portion control standards being followed, are there problems with inventory, etc.