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Products’ Value Addition

Products’ Value Addition

1. KWG Enterprises sells a frozen breaded shrimp, 8 to a pound, for $ 7.69 per pound. It’s fresh, raw shrimp, 14 to a pound, sell for $6.24 per pound. A restaurant normally sells about 24 orders of fried shrimp each day. Which product should the buyer purchase? Why?

2. What benefit  would a restaurant owner gain by listing on the menu the point of origin for the meat offerings?

3. The AP price of lean hamburger is $1.89 per pound. The AP price of regular hamburger is $1.09 per pound. The lean meat shrinks 10 percent  when cooked; the regular meat shrinks 30 percent.

i. At what AP price must the lean hamburger sell at to make it equal in value to the regular hamburger?

ii. Assume that the EP cost of both the lean and regular meat is equal. What other specific consideration should you examine before purchasing either the lean or the regular.

4. Is it a good idea to let a wine steward purchase, receive, store, and sell the wines? Why or why not? How would you exercise control over the wine steward?

5. The consumption of beverage alcohols in the United States has declined over the past few years. What are some of the reasons for this decline?

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Category: Sample Questions