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Doss [256]
3 years ago
12

A local pizza parlor adds special seasonal pizza to its menu every month, and they are thinking of permanently adding one to the

menu. But one employee suggests that it's not a specific pizza that people like, it's getting to try something new. So they look back at the sales for the special pizza for the past 4 months. Is there evidence that people have a preference for some of the special pizzas more than others?
Business
1 answer:
polet [3.4K]3 years ago
6 0

Answer:

If the past analysis suggests that the customers consume more of the special flavors then that special flavor can be added to the menu permanently. But the analysis is to be made that of which flavor is consumed more than the regular ones {already in the menu}. The taste of customers is important and this will help in adding more seasonal flavors {they can be added in the regular menu if the customers prefer new flavor}. If the analysis finds that customers don't consume special flavors for more than a single time than new flavors needs to be launched every month in order to secure high number of sales.

This 4 month analysis will enable the local pizza parlor achieve a good customer satisfaction and reach its goal.

Explanation:

If the past analysis suggests that the customers consume more of the special flavors then that special flavor can be added to the menu permanently. But the analysis is to be made that of which flavor is consumed more than the regular ones {already in the menu}. The taste of customers is important and this will help in adding more seasonal flavors {they can be added in the regular menu if the customers prefer new flavor}. If the analysis finds that customers don't consume special flavors for more than a single time than new flavors needs to be launched every month in order to secure high number of sales.

This 4 month analysis will enable the local pizza parlor achieve a good customer satisfaction and reach its goal.

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Answer:

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a) Data and Calculations:

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Annual overhead costs  $256,000              $480,000

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Overhead rates                $10.24                  $0.81

                         ($256,000/25,000)             ($480,000/$592,000)

Assuming number of units produced = 5,000

Each unit will consume   5 (25,000/5,000)   $118.40 ($592,000/5,000)

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Overhead cost per unit = $51.20                  $95.90

                                     ($10.24 * 5)               ($118.40 * $0.81)

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