Reference no: EM132966247

1. The Full Tummy Restaurant is open daily serving breakfast, lunch and dinner. The restaurant's fixed cost are RM24,000 per month while variable costs are estimated at RM8 per meal. The average total bill is RM12 per customer.

a. Compute the number of meals that must be serve if the restaurant wishes to earn a profit of RM8,000 per month.

b. Compute the break-even point in meals.

c. How much sales revenue must the restaurant make to achieve break-even point?

d. Assume that fixed cost increase to RM30,000. How many additional meals must be served if the restaurant wishes to earn the same profit?

e. If the fixed cost is RM30,000 per month and the restaurant wants to achieve an annual profit of RM140,000, how many meals must the restaurant sell each month?

2. How do skimming and penetration pricing strategies influence a product's supply and demand? Explain and give an example of each.

3. Describe three (3) ways to extend a product's life as it nears the end of the maturity stage.

4. Differentiate between high- and low-contact processes. Give an example of each.

5. Assume you are the manager of human resources at a manufacturing company that employs about 200 part time workers. A recent cyclical downturn in your industry due to Covid-19 pandemic has led to financial losses, and top management is talking about laying off these part-timers. Several supervisors have come to you with creative ways of keeping employees on the payroll, such as work from home (WFH). Why might you want to consider this option? What other options exist besides WFH and layoffs?