Devry busn319 week 5 you decide assignment
Question # 00095919
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Updated on: 08/22/2015 03:19 PM Due on: 08/15/2015
Price Strategy
Your Role/Assignment: Your variable cost per order is $3.00 in food costs and paper products. Of course, there are also fixed costs (whether you sell one or a hundred). These include your building lease ($2,000 per month, electricity $500 per month, and labor $3,100 per month).
Question: Using this formula, what is the break-even point? In other words, how many meals, at $7.00, would need to be sold before you start making a profit?
Breakeven Point (number of meals) = Fixed Costs/(Average Order Price - Average Order Cost).
The problem is that, even after being in business for a year, your restaurant is selling slightly less than 1,000 per month meals. There are several actions that can be taken to reach your break-even point, which is necessary if you are to remain in business. As the marketing director is responsible for the product, price, promotion, and placement, you control many of the tools to make necessary adjustments.
Deliverable: The owner has a passion for this business and is willing to follow your suggestions. He doesn't want to lose the business and you certainly want to keep your job. In a two page proposal, please provide the break-even formula and plug in the actual numbers to arrive at the correct answer. State the problem and then articulate the possible solutions to solve your stated problem. Here are some clues. You can increase revenue, decrease expenses, or some combination of both. There are many ways to do this. Make sure to also describe pricing constraints and why they must be considered within your proposed solution(s).
Please answer all required questions in APA format and reference anything within the paper if sources are used.
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Rating:
/5
Solution: A++ PERFECTLY DONE