below is the question and students response, reply to the students repsonse in 150 words
A local country club runs a very successful “19th Hole” that golfers frequent for a few drinks after a round of golf. The club also offers hot snacks to these golfers but the overhead of the food operation appears to be excessive. The new Golf Pro argues that the food operation should be discontinued because it is losing money and dragging down the net income of the club and thus affecting his bonus. As a management accounting student and a weekly golfer, what advice would you offer the Pro?
Based on the information provided, I would advise the new Golf Pro to consider the consequences of shutting down this segment outright.
Although the food coasts may be driving down net income, completely discontinuing this provision could dissuade the customers and potentially even lose loyal members of the club. The 19th Hole’s success obviously means that many members enjoy the food and social interactions that it provides. Losing members from dissatisfaction could cost the club more than what it is already losing in food costs and would create an even bigger problem.
An alternative to be considered would be to find another food processing company to buy raw ingredients from at a lower price. This would lower the cost of goods sold possibly without affecting sales and leading to a smaller loss. The club could also increase food prices and, together with this price increase, invest in ways to better market and/or prepare the food to incentivize the customers after the price increase. This could offset the increase in price ideally leading to a negligible drop in sales. Combine this idea with cheaper raw ingredients would equal a lower cost of goods, and higher net sales, resulting in a lower net loss and perhaps even net income.
I would say that they should continue to run the food operation.
As the case mentioned that the overhead of the food operation is excessive. However, drinking people tend to eat more after a few drinks. Discontinue the food operation might actually loss business.
Also, the golf pro is arguing discontinue the food operation solely based on his benefits. If the golf club really wants to make a decision on this, it should gather all the related information and make a proper analysis.
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.Read more
The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.Read more
The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.Read more
By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.Read more