Abstract
In 2015, the owner and the founder of a restaurant business in Dubai was concerned about the company's future expansion and growth. Although it was doing well in terms of profitability, a financial forecast was required for the following year, particularly in light of tough competition in the restaurant business in Dubai.
The case can be used in an introductory management accounting course at the undergraduate, graduate, or postgraduate levels.
It presents students with the opportunity to
understand the dynamics of the food industry in Dubai;
understand the relevant factors to be considered in the decision to expand;
examine the various issues faced by a typical small restaurant, and determine how to resolve these with the help of CVP analysis;
explore the interrelations between cost, volume, and profit by applying CVP analysis techniques and by identifying the break-even point and the margin of safety; and
critically evaluate the impact of uncertainty on projected sales using the sensitivity model.
The case can be used in an introductory management accounting course at the undergraduate, graduate, or postgraduate levels.
It presents students with the opportunity to
understand the dynamics of the food industry in Dubai;
understand the relevant factors to be considered in the decision to expand;
examine the various issues faced by a typical small restaurant, and determine how to resolve these with the help of CVP analysis;
explore the interrelations between cost, volume, and profit by applying CVP analysis techniques and by identifying the break-even point and the margin of safety; and
critically evaluate the impact of uncertainty on projected sales using the sensitivity model.
| Original language | English |
|---|---|
| Article number | Case Reference Number 9B17B020 |
| Number of pages | 9 |
| Journal | Ivey Publishing |
| Publication status | Published - 31 Aug 2017 |