Read Case Study 2: Loss from Production Waste (pp. 207-209) at the end of Chapter 10. In a two- to three-page paper (not including the title and reference pages), respond to the items addressed below. Make sure your responses are complete and thorough. In addition to your responses, you will be graded on the accuracy of your calculations.
- Identify and discuss potential problems in receiving.
- In the case study, the restaurant has a walk-in cooler, and the temperature is very inconsistent, resulting in short product shelf life. Explain how you would address the problem with the walk-in cooler.
- Calculate the percentage for second quarter product yield. Discuss your potential product yield issues.
- Assuming the yield percentage is correct, determine what the cost of sales should be and describe how you completed your calculations.
- Explain what the controller meant when he said the problem extended to the dining room.
You must include citations and references from the textbook and a minimum of two scholarly sources and format your paper according to APA style as outlined in the Ashford Writing Center.
CASE STUDY 2
“These statements can’t be right,” said Patrick Matthew, president of Michael’s Bistro. “Our sales in the second quarter were up by 25% over the first quarter, yet these income statements show a precipitous loss in net income for the second quarter. Those accounting people have fouled something up.” Patrick was referring to the following statements: attached in following files