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
-1000Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â
Margin Change in each Segment($ )
???
???
???
Total Restaurant Level Margin Change($)
???
Segment profitability Calculation
(Please show both the calculation process and the finalanswer)
Q1 What is the margin ($ 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 | -1000Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â Ă‚Â |
Margin Change in each Segment($ ) | ??? | ??? | ??? |
Total Restaurant Level Margin Change($) | ??? |
Answer & Explanation Solved by verified expert
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