Josh Nash has just invested $200,000 of his own funds in a new family-style restaurant. He has borrowed $200,000 at 8 percent annual interest from hids Uncle Nix. He desires a 20 percent return on his investment. The restaurant has 100 seats and is open six days per week (closed on Sundays). He believes he can achieve average seat turnovers as follows:
Breakfast= 1.4
Lunch= 1.6
Dinner= 1.2
His expected average tax rate is 15 percent. Assume the first day of the year is a Monday. Cost estimates are as follows:
Annual Fixed Costs Variable Costs
Rent $32,000 Food Costs 30%
Insurance 6,000 Wage Costs 25%
Depreciation 35,000 Supplies 10%
Salaries 160,000 Utilities 2%
Utilities 26,000 Other 5%
Other 25,000
Required:
1. Determine the average guest check
2. If the percentage sales by meal period are 20 percent, 30 percent, and 50 percent for breakfast, lunch, and dinner, respectively, what is the average check for each period?
Part1 Choose an example of a global value chain and an example of domestic value chain. Compare and contrast the key challenges that the managers would face. Then, propose the ways to confront these challenges.
Part 2 Utilizing the Exhibit 2.4 from Chapter 2 of the text (See this Below), evaluate how each value chain you chose from Part 1 of this discussion can be described from a pre- and post-production service perspective. Provide at least two examples for each perspective.