HTM 2030 Lecture Notes - Lecture 3: Fixed Cost, Variable Cost, The Variable

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 2030
• Professor: William Murray

Document Summary

Operating statement categories: cost of sales, cost of labour, cost of overhead (i. e. depreciation, occupancy cost etc. ) Determine total sales ($) when: cost of sales = ,500, cost of labour = ,247, cost of overhead = ,883, and desired profit = ,129. When judging costs, it is important to have a very good understanding of context . Higher cost % = > impact on volume. Cost stay the same/ menu prices down increased value proposition. Decreased costs (value)/ menu prices the same drop in volume greater than cost changes. Context and execution are critical to judging the relationship between cost, business volume and profit as either good" or bad": can be contingent on. The willingness (do you want to pay?) and ability (can you pay?) of customers to pay more. The impact of lowering costs of the quality of good, beverages and the service.