Week 9 : EOC

“I think I can buy it at a great price,” said Dan Flood. He was talking about the Watershed Restaurant. The property was for sale and Dan was meeting with Loralei Glenn, his friend and an experienced restaurant manager. “It’s losing about 7 cents on each dollar sale now,” continued Dan, “but I know we can turn that around.”

Loralei considered Dan’s proposal that they form a partnership, acquire the restaurant, and share in the profits they planned to make. She knew that, before it was possible to share profits, they would actually have to make a profit. That meant, to go from losing 7 cents per dollar to making money, they would have to increase sales, reduce costs, or both. She mentioned that to Dan.

“Well,” he replied, “I’m not sure we need to increase the sales at all. If we buy at the right price, I think we just need to reduce our costs. You can do that!”

Assume that the restaurant’s sales volume last year was approximately $1,400,000, and thus its loss for the year was about $98,000.

    1. If Dan and Loralei decide to buy the restaurant, some fixed costs would be incurred. List at least five important fixed costs that would be directly affected by the purchase decisions Dan would make regarding the acquisition of the property.
    2. If Dan and Loralei operate the restaurant, some variable costs would be incurred. List at least five important variable costs that would be directly affected by the operating decisions Loralei will make as she manages the restaurant.
    3. Consider the decisions Dan and Loralei will make if they choose to acquire the restaurant. While clearly both are important, whose decisions do you think are the most important to ensuring the future profitability of the Watershed? Why do you think so?

Week 8: EOC Quiz 8, Question 4

a. What were the total revenues in October 2009 and October 2010?

b. What was the GOP in dollars in October 2009 and October 2010?

c. What was the percentage of GOP to total revenues in October 2009 and October 2010?

d. What was the flow-through percentage achieved by Santi’s hotel? What is your assessment of that percentage?

Answers: 

a. Oct. 2009 revenues =$545,000

Oct 2010 revenues $583,000 

b.  Oct 2009 GOP= $162,000

Oct 2010 GOP= $184,550

c.  Oct 2009 GOP%= 29.72%

Oct 2010 GOP %= 31.66% 

d.  Flow Through % = 59.34% Flow through is high (over 50%) and it can reflect efficiency on the part of management in converting additional revenues into additional profits.

Week 6 EOC: Weed in the Workplace

"Employers with employees who use medical marijuana will have to do some studying into the employee's job requirements. In those states where an accommodation is required, an employer needs to carefully evaluate the job before taking any action due to the use of medical marijuana." (Society for Human Resource Management)

To put into perspective how marijuana affects people in the workplace you need to think about the type of environment that the employer will be in. As a fashion professional, in the workplace I would find it completely acceptable. Marijuana affects people all differently. It has different affects on the body.

During a study conducted in 2013, researchers from Melbourne to Barcelona, figured that different genes affect the influence of cannabis on the brain, and while performing all those cognitive tests on smokers vs. non-tokers, they also found that “daily cannabis use is not associated with executive function deficits.” "Why Pot Affects Everyone Differently." High Times. N.p., n.d. Web. 07 Nov. 2016.

Another argument is that recreational smokers have no affect to their executive functions. During years and years of smoking recreational users find it easier and more comfortable to function while using. It makes them more focused on the task at hand and generally makes their work excel v.s a non-recreational smoker it throws them off and does not make them focus.


Interestingly, the study also concluded, “daily cannabis consumption does not significantly impair executive functions among young users, not even in users with age of onset before 15 years old.” "
"Why Pot Affects Everyone Differently." High Times. N.p., n.d. Web. 07 Nov. 2016."

This study was done with 86 recreational marijuana smokers and 58 non recreational smokers and ouyt them through a series of different tests. "COMT Val158met and 5-HTTLPR Genetic Polymorphisms Moderate Executive Control in Cannabis Users." Neuropsychopharmacology. Nature Publishing Group, 2013. Web. 07 Nov. 2016.