Segment profitability Calculation (Please show both the calculation process and the final answer) Q1 What is the margin...

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Segment profitability Calculation

(Please show both the calculation process and the finalanswer)

Q1 What is the margin ($ dollar value) of each segment(experientials, indulgents and frugals) per customer per year forRed Lobster according to the table below?

(hint: food margin($)for each customer+ alcohol margin($)foreach customer)

Q2 Which segment is the most profitable and should be target ataccording to results in Q1?

Q3 Calculate each segment’s total margin change ($) if RedLobster gain 2000 new unique Experiential customers, but lose 1000Indulgent and 1000 Frugals.

Q4 Calculate the restaurant level total margin($)change if RedLobster gain 2000 new unique Experiential customers, but lose 1000Indulgent and 1000 Frugals.

Experientials

Indulgents

Frugals

% of unique customers

23%

24%

28%

Meals/year/customer

6.3

5.6

3.8

Total spend/meal/customer ($)

24.88

18.78

14.86

% spend on food

88%

96%

99%

% spend on alcohol

12%

4%

1%

% Margin on food

67%

67%

67%

% Margin on alcohol

81%

81%

81%

Margin for each segment per customer per year($)

???

???

???

Change in the number of customers

2000

-1000

-1000        

Margin Change in each Segment($ )

???

???

???

Total Restaurant Level Margin Change($)

???

Answer & Explanation Solved by verified expert
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Segment profitability Calculation Please show both the calculation process and the final answer he margin dollar value of each segment experientials indulgents and frugals per customer per year for Red Lobster according to the table below hint food marginfor each customer alcohol marginfor each customer Which segment is the most profitable and should be target at    See Answer
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