Given: Check Average = $7.50 Drive thru hours: 11AM-2PM and 5PM-8PM=100 cars 7AM

Question

Given:

Check Average = $7.50

Drive thru hours:

11AM-2PM and 5PM-8PM=100 cars

7AM-11Am=75 cars per hour

2PM-5PM, 8PM-11PM = 85 cars per hour

Open 16 Hours per day

Open 311 Days a year

Labor is $9 per hour on average

Adding one Person will add 25% Throughput between 11Am-2Pm, and 5PM-8PM, and 10% other times

Adding 2 people will add 10% Throughput Between 11Am-2Pm, and 5PM-8PM, and 5% other times

Adding 3 people will add 5% Throughput Between 11Am-2Pm, and 5PM-8PM, and 0% other times

Questions:

A) What is the best recommendation? When the best times to add people and gain are profit and when are the times not to?

B) How long will it take (how many days) before the costs are paid for and incremental profit kicks in?

Explanation / Answer

Hours Cars per hour Check average Revenue per day $ 11AM-2PM 3 100 7.5 2250 5PM-8PM 3 100 7.5 2250 7AM-11AM 4 75 7.5 2250 2PM-5PM 3 85 7.5 1912.5 8PM-11PM 3 85 7.5 1912.5 10575 Yearly Revenue $ 3288825 Yearly cost $ 44784 Total hours per day*Total no of day * Labor cost per hour Profit 3244041 Scenario 1: Adding one person Hours Cars per hour Scenario 1 Check average Revenue per day $ 11AM-2PM 3 100 125 7.5 2812.5 5PM-8PM 3 100 125 7.5 2812.5 7AM-11AM 4 75 82.5 7.5 2475 2PM-5PM 3 85 93.5 7.5 2103.75 8PM-11PM 3 85 93.5 7.5 2103.75 12307.5 Yearly Revenue $ 3827632.5 Yearly cost $ 44784 Cost of one person - 16*311*9 44784 Profit 3738064.5 Scenario2: Adding two people Hours Cars per hour Scenario 1 Check average Revenue per day $ 11AM-2PM 3 100 110 7.5 2475 5PM-8PM 3 100 110 7.5 2475 7AM-11AM 4 75 78.75 7.5 2362.5 2PM-5PM 3 85 89.25 7.5 2008.125 8PM-11PM 3 85 89.25 7.5 2008.125 11328.75 Yearly Revenue $ 3523241.3 Yearly cost $ 44784 89568 Profit 3388889.3 Scenario 3: Adding three people Hours Cars per hour Scenario 1 Check average Revenue per day $ 11AM-2PM 3 100 105 7.5 2362.5 5PM-8PM 3 100 105 7.5 2362.5 7AM-11AM 4 75 75 7.5 2250 2PM-5PM 3 85 85 7.5 1912.5 8PM-11PM 3 85 85 7.5 1912.5 10800 Yearly Revenue $ 3358800 Yearly cost $ 44784 134352 Profit 3179664 Clearly Scenario 1 is the best option

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.