Mr. Jim Cruz is the manager of the GJ Sizzles Restaurant, a 60 seater casual grill room restaurant with American type of service that is located downtown. The restaurant is always busy specially on Sundays and Saturdays. Last Saturday, around 9 o’clock in the morning, Mr. Cruz was rattled because of the chaos created by the customers who were asking for their orders and some were waiting to be attended. This was the first time that the restaurant experienced this kind of situation. When he investigated what happened, Ron and James, the waiters on duty, told Mr. Cruz that Billy called them that he can’t report to work because he has important thing to attend to. Chris, the senior waiter was on day-off. There was also a delay in the preparation of food in the kitchen. Questions to answer

What do you think are the root cause of the problem?

Do you think Mr. Cruz has a negligence on the situation? Point out those things.

If you were Mr. Cruz, what will you do to avoid the reoccurence of the problems?

What do you think may be the possible reasons on the delay of food from the kitchen?

You are frustrated to find that the only way to contact the customer service department is to make a phone call. the number listed would result in long distance charges to your phone bill. which issue should be addressed by the company to keep its crm in line with your expectations?

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.