Practise calculating and interpreting profit or loss for IB Business Management HL decisions with real exam-style questions and mark schemes.
Jill Anderson operates a restaurant. Although Jill’s meals are viewed as being excellent quality, sales are slowing.
Jill Anderson
Jill Anderson operates a restaurant. Although Jill's meals are viewed as being excellent quality, sales are slowing. Jill is considering replacing existing meals with gluten-free meals. The following financial and forecast information is for the month of May 2018. Jill's restaurant can only produce either existing or gluten-free meals.
Table 1: Existing meals
Table 2: Estimated costs and price if Jill produces the gluten-free meals
A local gluten-free manufacturer, which is not part of Jill's existing supply chain, has offered to supply already prepared gluten-free meals at per meal. Jill is unsure whether to make or buy the gluten-free meals.
Calculate:
the total profit or loss on existing meals for May 2018 (show all your working);
the forecast profit or loss if Jill decides to make and sell gluten-free meals (show all your working);