Assume that you are in charge of pricing for a firm that produces pickles. You have fixed costs of $2,000,000. Variable costs are $0.75 per jar of pickles. You are….
What types of actions you can take in this situation?
You work for a major restaurant in your town. The manager is facing cost pressures from rising food prices and says she needs to raise revenues. She decides to reduce the size of the meal portions and use cheaper cuts of meat and fish in some entrées while holding the menu prices constant. She tells you and other staff members not to mention the changes to customers and to deflect any questionsor complaints you hear. The descriptions in the menu will not be changed, she says, “because the printing costs would be too high.” (7 Marks)
i. A customer of your restaurant complains about the quality of the food being compromised. What would you do to satisfy that customer? (3 Marks)
The restaurant continuously advertises about the quality ingredients as it used to do before but you yourself think it is ethically not the right thing to do and it bothers you. What types of actions you can take in this situation? (4 Marks