Critical Thinking Gt Decision Case 23 1 Suppose You Manage The Local Scoopy S

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CRITICAL THINKING> Decision Case 23 – 1)Suppose You manage the local Scoopy’s ice cream parlor . In addition to selling ice*cream cones , You make large batches of a few flavors of milk shakes to sell through-out the day . Your parlor is chosen to test the company’s " Made- for – You" system .This new system enables patrons to customize their milk shakes by choosingdifferent flavors .*Customers like the new system and your staff appears to be adapting , but youwonder whether this new made – to – order system is as efficient as the old system inwhich you just made a few large batches . Efficiency is a special concern because*your performance is evaluated in part on the restaurant’s efficient use of materialsand labor . Your superiors consider efficiency variances greater than 5% to beunacceptable ."You decide to look at your sales for a typical day. You find that the parlor used390 pounds of ice cream and 72 hours of direct labor to produce and sell 2, 000shakes . The standard quantity allowed for a shake is 0. 2 pound of ice cream and 0. 03hour of direct labor . The standard costs are $1 . 50 per pound for ice cream and $8 perhour for labor .

Prof. Angela


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