Basic Quantitative Methods
The general manager wants to know what the impact will be on the business if sales continue to decline at the current rate and no action is taken. This can be broken down into two questions:
How long will it be before All-Store starts operating at a loss?
How long will it be before All-Store goes bankrupt?
How Long Before All-Store Starts Operating at a Loss?
What do you think the results of your calculations will mean for the company?
What specific actions would you recommend based on all of the available information? For example, what is a specific way for the company to cut costs?
How many peak and nonpeak hours are there during the week? Peak refers to busy times and nonpeak refers to less busy times.
What is the minimum labor cost per week?
What is the minimum number of people needed during store hours?
What is the difference in monthly cost between renting and buying?
Given the down payment required, how many months would it be before the purchase paid for itself?
