Gentle Lentil Monthly Earnings
GENTIL LENTIL CASE GENTLE LENTIL MONTHLY EARNINGSMonthly fixed costsL = labor costs (between $5040 and $6860)U = rent and other costs $3995Monthly variable costsF = food costsM = no of meals served per month F = $11 * M Total monthly costs[pic 1]Monthly revenuesR = monthly revenuesP = price of the mealR = P*MMonthly earningsX = monthly earningsX = revenues – cost[pic 2] Distribution of variablesM = number of meals sold per month . it obeys normal distribution with mean = 3000, variance = 1000
P = price of the fixed meal.it obeys discrete distributionscenarioPrice of the meal($)probabilityVery healthy market20.000.25Healthy market18.000.35Not so healthy market16.000.30Unhealthy market15.000.10L = labor costs per month . it obeys uniform distribution with a minimum of $5840 and maximum of $6860. With partnership Restaurant earnings in monthSanjay earnings in monthX < $3500$3500$3500 < X < $9000XX > $9000$9000 + 0.10 *(X-9000)Questions Without considering the partnership opportunity the expected monthly salary of sanjay at gentil lentil E(X) = 10,783.07Monthly salary at consulting firm = 80,000/12