What are the effects on variable labor cost and on variable labor cost percentage when an operation's sales increase? Cost of variable labor increases and variable labor cost percentage increases Cost of variable labor decreases and variable labor cost percentage increases Cost of variable labor decreases and variable labor cost percentage is unchanged Cost of variable labor increases and variable labor cost percentage is unchanged In the last quarter a restaurant had management labor costs of $20,000, staff labor costs of $80,000 and employee benefits costs of $30,000. The operation achieved a 25% total labor cost last month. How much revenue did the operation generate in the last quarter?
The primary purpose of Cost/Volume/Profit (CVP) analysis is to forecast future sales more accurately. find out which menu items arc most profitable. estimate an operation's income before income taxes. identify the amount of sales revenue needed to avoid an operating loss. What is the goal of managers who use matrix analysis to evaluate menu items based on each item's popularity and food cost percentage?
Increase sales Maximize contribution margin Minimize food cost percentage Decrease controllable other expenses A manager utilizes contribution margin matrix analysis to evaluate her menu. What would be a good marketing strategy to use on an item she determines is very popular but has a low contribution margin? Promote the item well Reduce the item's price Remove the item from the menu Reduce the item's prominence on the menu A menu item sells for $11.95 and has a 40% food cost. Variable costs for the item arc 25% and 250 servings are sold. What is the item's goal value?