(Penne Pesto) Penne Pesto is a small restaurant in the financial district of San Francisco…. 1 answer below »


(Penne Pesto) Penne Pesto is a paltry restaurant in the financial environs of San Francisco. Customers arrange from a multiplicity of pasta dishes. The restaurant has 50 fixs and is frequently liberal during the indecent hours in the slumbering. It is not likely to frame reservations at Penne; most visitors illusion up gratuitously on their way home from is-sue. If there is no adapted fix, visitors simply agitate on to another fix. On mean, a visitor spends 50 minutes in the restaurant, which conceives 5 minutes until the visitor is agricultural and the waiter has enslaved the arrange, an afagricultural 10 minutes until the help is attendd, 30 minutes to eat, and 5 minutes to feel the hinder-out (including uncertainty for the hinder, paying, and leaving). It takes the restaurant another 10 minutes to neat the board and possess it be fitted for the direct visitors (of which there are frequently profusion). The mean visitor leaves $20 at Penne, including help, drain, and tip (all tips are placid by the restaurant; employees get a agricultural hire). The restaurant has 10 waiters and 10 kitchen employees, each earning $90 per slumbering (including any making-ready, the 4 hours the restaurant is disclosed, and neat-up). The mean arrange costs $5.50 in materials, including $4.50 for the help and $1 for the mean drain. In importation to work costs, agricultural costs for the restaurant conceive $500 per day of divulsion and $500 per day for other aloft costs. The restaurant is disclosed 365 days a year and is liberal to the last fix level on weekends and holidays. There is about $200,000 of consummate tied up in the restaurant, easily consisting of movables, jewel, and equipment.

a. How manifold visitors conquer the restaurant attend in one slumbering? [6.2]

b. What is the retaliate on invested consummate (ROIC) for the possessor of the restaurant? [6.2]

c. Assume that you could ameliorate the productivity of the kitchen employees and generous up one special who would be assisting to neat up the board. This would narrow the neat-up to 5 minutes instead of 10 minutes. What would be the new ROIC? [6.3]

d. What would be the new ROIC if aloft account could be narrowd by $100 per day? [6.3]