Gentle Lentil Monthly Earnings
Autor: Vinisha Gembali • June 7, 2016 • Case Study • 340 Words (2 Pages) • 1,103 Views
GENTIL LENTIL CASE
GENTLE LENTIL MONTHLY EARNINGS
Monthly fixed costs
L = labor costs (between $5040 and $6860)
U = rent and other costs $3995
Monthly variable costs
F = food costs
M = no of meals served per month
F = $11 * M
Total monthly costs[pic 1]
Monthly revenues
R = monthly revenues
P = price of the meal
R = P*M
Monthly earnings
X = monthly earnings
X = revenues – cost[pic 2]
Distribution of variables
M = number of meals sold per month . it obeys normal distribution with mean = 3000, variance = 1000
P = price of the fixed meal.it obeys discrete distribution
scenario | Price of the meal($) | probability |
Very healthy market | 20.00 | 0.25 |
Healthy market | 18.00 | 0.35 |
Not so healthy market | 16.00 | 0.30 |
Unhealthy market | 15.00 | 0.10 |
L = labor costs per month . it obeys uniform distribution with a minimum of $5840 and maximum of $6860.
With partnership
Restaurant earnings in month | Sanjay earnings in month |
X < $3500 | $3500 |
$3500 < X < $9000 | X |
X > $9000 | $9000 + 0.10 *(X-9000) |
Questions
- Without considering the partnership opportunity the expected monthly salary of sanjay at gentil lentil
E(X) = 10,783.07
Monthly salary at consulting firm = 80,000/12
...