Baker Consolidated operates a cafeteria for its employees. The operation of the cafeteria requires fixed costs of $4,700 per month and variable costs…

Baker Consolidated operates a cafeteria for its employees. The operation of the cafeteria requires fixed costs

of $4,700 per month and variable costs of 40% of sales. Cafeteria sales are currently averaging $12,000 per

month.

Baker has an opportunity to replace the cafeteria with vending machines. Gross customer spending at the

vending machines is estimated to be 40% greater than current sales, because the machines are available at

all hours. By replacing the cafeteria with vending machines, Baker would receive 16% of gross customer

spending and avoid all cafeteria costs. In a poll, employees did not express a preference for one option over

the other.

In a 1- to 2-page document, explain the impact of this decision. Be sure to address the following:

How much does monthly operating income change if Baker Consolidated

replaces the cafeteria with vending machines? Explain using linear profit modeling calculations.

What recommendation would you make for Baker Consolidated’s managers

considering this decision? Justify your response. In your recommendation, be sure to calculate how the monthly

operating income changes if the company replaces the cafeteria with vending machines.

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10