# Production waste | Human Resource Management homework help

## Case Study 2: Loss from Production Waste

#### How many pages is this assigment?

Read Case Study 2: Loss from Production Waste (pp. 207-209) at the  end of Chapter 10. In a two- to three-page paper (not including the  title and reference pages), respond to the items addressed below. Make  sure your responses are complete and thorough. In addition to your  responses, you will be graded on the accuracy of your calculations.

• Identify and discuss potential problems in receiving.
• In the case study, the restaurant has a walk-in cooler, and the  temperature is very inconsistent, resulting in short product shelf life.  Explain how you would address the problem with the walk-in cooler.
• Calculate the percentage for second quarter product yield. Discuss your potential product yield issues.
• Assuming the yield percentage is correct, determine what the cost of  sales should be and describe how you completed your calculations.
• Explain what the controller meant when he said the problem extended to the dining room.

You must include citations and references from the textbook and a  minimum of two scholarly sources and format your paper according to APA  style as outlined in the Ashford Writing Center.

“These statements can’t be right” said Patrick Matthew, president of Michael’s Bistro. “Our sales in the second quarter were up by 25 percent over the first quarter, yet these income statements show a precipitous loss in net income for the second quarter. Those accounting people have fouled something up.” Patrick was referring to the following statements:MICHAEL’S BISTRO Income Statements For the First Two Quarters1st QuarterPercent2nd QuarterPercentVarianceFood Sales1,000,000    83.33    1,250,000    83.33    Beverage Sales200,000    16.67    250,000    16.67    Total Food and Beverage Sales1,200,000       100.00       1,500,000       100.00       25      Food Cost320,000    32.00    500,000    40.00    Beverage Cost76,000    38.00    95,000    38.00    Total Cost of Sales396,000 33.00 595,000 39.67 7 Salaries and Wages330,000    27.50    405,000    27.00    Employee Benefits35,000    10.61    42,971    10.61    Tax and Benefits31,000    9.39    38,030    9.39    Total Payroll396,000 33.00 486,000 32.40 -1 China, Glass, Silverware10,000    0.83    10,000    0.83    Credit Card Fee12,000    1.00    15,000    1.00    Decorations Expense4,000    0.33    4,000    0.33    Equipment Repairs—General8,000    0.67    8,000    0.67    General/Office Supplies2,000    0.17    2,000    0.17    Janitorial/Cleaning Supplies5,000    0.42    5,000    0.42    Laundry and Dry Cleaning2,500    0.21    4,000    0.21    Linens—Replacement1,500    0.13    1,500    0.13    Operating Supplies25,000    2.08    30,000    2.08    1st QuarterPercent2nd QuarterPercentVariancePostage5,000    0.42    5,000    0.42    Printing Supplies/Forms5,000    0.42    5,000    0.42    Promotion10,000    0.83    10,000    0.83    Smallwares/Utensils10,000    0.83    12,000    0.83    Telephone3,000    0.25    3,000    0.25    Trash Removal5,000    0.42    5,000    0.42    Uniforms—Replacement3,000    0.25    3,000    0.25    Utilities15,000    1.25    20,000    1.25    Controllable Profit126,000 10.50 142,500 9.50 -1 Rent36,000    3.00    36,000    3.00    Interest Expense144,000    12.00    144,000    12.00    Depreciation—Equipment60,000    5.00    60,000    5.00    Property & Liability Insurance60,000    5.00    60,000    5.00    Total Noncontrollables300,000 25.00 300,000 20.00 -5 Profit and Loss Before Tax−18,000 −1.50 −23,500 −1.57 After studying the statement briefly, Patrick called the controller to see if the mistake in the second quarter could be located before the figures found their way to the press. The controller stated, “I’m sorry to say that those figures are correct, Patrick. I agree that sales went up during the second quarter, but the problem stems from the loading dock, the storeroom, the kitchen, and dining room”Patrick was confused by the controller’s explanation. He replied, “This doesn’t make any sense. I ask you to explain why we are losing money, though sales went up, and you talk about the production area. You always tell me that food cost is high because the customer orders high-cost items from the menu. If sales go up, then profit should go up. Shouldn’t that be happening? Do you have a better explanation?”Your answers will be guided by the following information:1st QuarterPercent2nd QuarterPercentBeginning Inventory100,000    80,000    Purchases300,000    490,000    Ending Inventory80,000    70,000    Product Yield5.12 86?    Average Check\$ 16.00    \$ 16.00    Cover Count62,500    78,125    The restaurant consistently uses last-price method for inventory valuation. The restaurant scale is not calibrated.Your task:

• 1.Identify and discuss potential problems in receiving.
• 2.In our case study, the restaurant has a walk-in cooler, and the temperature is very inconsistent, resulting in short product shelf life. Given that, how would you address this problem?
• 3.What is the percentage for second quarter product yield?
• 4.Identify and discuss your potential product yield issues.
• 5.Assuming the yield percentage is correct, what should the cost of sales be?
• 6.What did the controller mean when he said the problem extended to the dining room?

(Ojugo 207-209)

Ojugo, Clement. Practical Food and Beverage Cost Control,  2nd Edition. Cengage Learning, 20090331. VitalBook file.

The citation provided is a guideline. Please check each citation for accuracy before use.

Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
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

At 111papers.com, we value all our customers, and for that, always strive to ensure that we deliver the best top-quality content that we can. All the processes, from writing, formatting, editing, and submission is 100% original and detail-oriented. With us, you are, therefore, always guaranteed quality work by certified and experienced writing professionals. We take pride in the university homework help services that we provide our customers.

### Money-Back Guarantee

As the best homework help service in the world, 111 Papers ensures that all customers are completely satisfied with the finished product before disbursing payment. You are not obligated to pay for the final product if you aren’t 100% satisfied with the paper. We also provide a money-back guarantee if you don’t feel that your paper was written to your satisfaction. This guarantee is totally transparent and follows all the terms and conditions set by the company.

### Zero-Plagiarism Guarantee

All products that we deliver are guaranteed to be 100% original. We check for unoriginality on all orders delivered by our writers using the most advanced anti-plagiarism programs in the market. We, therefore, guarantee that all products that we submit to you are 100% original. We have a zero-tolerance policy for copied content. Thanks to our strict no plagiarized work rule, you can submit your homework to your professor without worrying.

### Free-Revision Policy

TThis is one of the most cherished courtesy services that we provide to help ensure that our customers are completely satisfied with our finished products. Delivering the best final product to our customers takes multiple inputs. 111papers.com prides itself on delivering the best university homework help services in the writing industry. And, in part, our free revision policy is how we do it. What’s more, all our revisions are 100% free without any strings attached.

Client privacy is important to use. We know and understand just how important customers value their privacy and always want to safeguard their personal information. Thus, all the information that you share with us will always remain in safe custody. We will never disclose your personal information to any third party or sell your details to anyone. 111 Papers uses the most sophisticated, top-of-the-line security programs to ensure that our customers’ information is safe and secured.

### Fair-Cooperation Guarantee

Placing your order with us means that you agree with the homework help service we provide. We, in turn, will endear to ensure that we do everything we can to deliver the most comprehensive finished product as per your requirements. We will also count on your cooperation to help us deliver on this mandate. Yes, we also need you to ensure that you have the highest-quality paper.

## 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: