Answer:
1. $2,296
2. $19.58
3. Total labor cost = Fixed cost + (variable cost × employee hour)
Explanation:
The computations are shown below:
1. The fixed cost would be
= High labor cost - (High employee hours × Variable rate per hour)
= $10,324 - (410 hours × $19.58)
= $10,324 - $8,028
= $2,296
2. Variable rate per hour = (High labor cost - low labor cost) ÷ (High employee hours - low employee hours)
= ($10,324 - $6,800) ÷ (410 hours - 230 hours)
= $3,524 ÷ 180 hours
= $19.58
3. The cost formula would be
Total labor cost = Fixed cost + (variable cost × employee hour)
= $2,296 + ($19.58 × employee hour)
The two measures of instability in economic growth are high unemployment rates and inflation
Answer:
A share of Citigroup stock represents a claim on Citigroup's assets that gives the purchaser a share of the corporation.
Depending on whether you are an investor or the corporation, a bond is more or less riskier than a stock.
If you are an investor, buying a bond is safer than buying stock since in a worse case scenario where the company goes bankrupt, bond holders are paid before than stockholders. Also bonds provide fixed periodic payments (coupons) and a final payment of the face of the bond at maturity date.
If you are the corporation, issuing bonds is riskier than issuing stock since you have the obligation of making fixed periodic payments to bondholders (coupons) and must pay the face value at maturity date. On the other hand corporations don't have any legal obligation to pay dividends.
Back in 2015, McDonald’s was struggling. In Europe, sales were down 1.4% across the previous 6 years; 3.3% down in the US and almost 10% down across Africa and the Middle East. There were a myriad of challenges to overcome. Rising expectations of customer experience, new standards of convenience, weak in-store technology, a sprawling menu, a PR-bruised brand and questionable ingredients to name but a few.
McDonald’s are the original fast-food innovators; creating a level of standardisation that is quite frankly, remarkable. Buy a Big Mac in Beijing and it’ll taste the same as in Stratford-Upon Avon.
So when you’ve optimised product delivery, supply chain and flavour experience to such an incredible degree — how do you increase bottom line growth? It’s not going to come from making the Big Mac cheaper to produce — you’ve already turned those stones over (multiple times).
The answer of course, is to drive purchase frequency and increase margins through new products.
Numerous studies have shown that no matter what options are available, people tend to stick with the default options and choices they’ve made habitually. This is even more true when someone faces a broad selection of choices. We try to mitigate the risk of buyers remorse by sticking with the choices we know are ‘safe’.
McDonald’s has a uniquely pervasive presence in modern life with many of us having developed a pattern of ordering behaviour over the course of our lives (from Happy Meals to hangover cures). This creates a unique, and less cited, challenge for McDonald’s’ reinvention: how do you break people out of the default buying behaviours they’ve developed over decades?
In its simplest sense, the new format is designed to improve customer experience, which will in turn drive frequency and a shift in buying behaviour (for some) towards higher margin items. The most important shift in buying patterns is to drive reappraisal of the Signature range to make sure they maximise potential spend from those customers who can afford, and want, a more premium experience.
I hope this was helpful
