University : Others UniLearnO is not sponsored or endorsed by this college or university.
Country : Australia

Assignment Task

1. Run a regression on the restaurant’s forecast utility expense to gain further insight into the cost behaviour of the utilities expense. (Hint: Use the monthly total utilities cost as the dependent (y) variable, and the number of monthly customers as the independent (x) variable.

  1. What is the monthly fixed cost component of the utilities expense?

  2. What is the variable cost component of the utilities expense per customer?

  3. How accurate do you think the output of the regression is?

2. Assume the average customer spends $30 on food, and $15 on beverages. How many customers per year do you need to break-even?

(Note: For this analysis only, you may assume all costs except food supplies and beverage supplies are fixed.)

3. The owner of the restaurant has a target of making a 150,000 per year profit (ignore tax).

  1. How many customers would they need to service to reach this target?

  2. What % of seating capacity would the restaurant need to operate at to reach this target?

4. Update the budget for the months April, May and June to reflect the new social distancing regulations. Please provide a screenshot of your updated budget in this document.

The following assumptions will help:

  1. You expect the capacity of the restaurant will be reduced by half. This will reduce the number of customers and therefore reduce the variable

  2. You will reduce your wait staff to only employ 2 casual wait staff and 1 part-time wait staff

  3. You expect the interest rate to drop to 3% a.

  4. The other forecast assumptions can be

5. Given the information contained in the updated budget, what do you estimate the restaurant’s net profit and profit margin for the entire year will be?

6. Calculate the quarterly net profit and profit margin for Q4 (April – June) and compare it to the Q3 (Jan – March) figures. Provide a brief discussion regarding the change in financial performance.

7. Using the updated budget forecast for Q4. Calculate the number of customers required to break-even for the 4th quarter. (Note: Similar to question 3 - for this analysis, you may assume all costs for Q4 except food supplies and beverage supplies are fixed.)

8. The owner’s target profit of $150,000 per year target would be $37,500 per quarter.

  1. How many customers would they need to reach this target in Q4?

  2. What % of seating capacity would the restaurant need to operate at to reach this target? Is this possible?

9. A large company wants to ensure their staff get together socially once a month face-to-face. They offer to book out Ombana’s restaurant fully for 1 lunch a month during April, May and June. They ask for a 20% discount on the food and drink prices. They would provide 25 customers, fully booking out the restaurant for the lunch sitting. Calculate if this deal makes financial sense and explain if you would accept the deal given the circumstances.

10. Ombana’s have never offered takeaway food before. However, given the changing industry, they want to evaluate if offering takeaway meals will be beneficial for the business. They could hire their own delivery driver for $150 a night and take phone orders, or they could outsource to UberEATS to offer food deliveries. UberEATS take a 30% commission on all sales booked through their platform.

  1. Explain how Ombana’s could evaluate if it is a good idea to offer

  2. Explain how Ombana’s should decide whether to hire their own delivery driver or to outsource – include calculations in your

  3. Which decision would you make and why?

11. Given what you have learned based on your above analysis of Ombana’s restaurant, discuss whether you think many restaurants in Sydney will close down due to social

distancing regulation, or if they will be able to quickly adapt their business models to continue profitable operations.

This Accounting has been solved by our PhD Experts at Unilearno. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK and US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics and referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.

Eureka! You've stumped our genius minds (for now)! This exciting new question has our experts buzzing with curiosity. We can't wait to craft a fresh solution just for you!

  • Uploaded By : Andrew
  • Posted on : January 23rd, 2024

Whatsapp Tap to ChatGet instant assistance