1. Technical Math class 2011

2.  Status Quo  Schmidt’s Motives ◦ Worker Wages – $7.00 per hour  Profit Margin ◦ 35% profit  Volunteering and Community Involvement

3.  Luxery ◦ With a cost  Can we compete in market?

4.  Town of 50,000  Only high class restaurant in the area ◦ Open 12 hours a day  11am – 11pm  All workers paid minimum wage - $1.50 per hour plus tips or $7.00 per hour ◦ Hidden cost

5.  4500 patrons a months. 150 per day.  Profit margin of 35%. Average customer spends $35 dollars on items.

6.  10 employees working at a time ◦ 3 cooks ◦ 4 waitresses ◦ 2 bussers ◦ 1 hostess

7.  Profit is high ◦ Low wages ◦ Small work force ◦ High prices  Anything not spent on advertising and overhead is kept.