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Posted: September 22nd, 2022
You are assisting management consider different cost and pricing strategies. Consider the following data and report to management your findings.
1. The cocktail bar in the Le Cordon Bleu hotel currently has sales revenue of $650,000.00 per year. Beverage costs amount to 40% and other variable costs at this level of revenue amount to 10%. Fixed costs are $170,000pa.
You are required to show all relevant formula and calculations using a professional layout as explained during class tutorial sessions. Use Excel and use whole numbers. Percentages where shown should be 1 decimal place ie xx.x%. Please read the questions and information carefully.
1.1 What is the annual net profit (before tax)? (4) 1.2 The owner wants to increase the manager’s salary by $12,000 per year. What is the new sales revenue needed to provide this additional salary and maintain the current level of net profit? Show the equation you used to arrive at this answer. (2) (Any added sales revenue will come from increasing seat turnover by improving/increasing the efficiency of customer service). Finance homework help
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