Marketing Exam

1. Given the following information, calculate the number of meals a restaurant would have to sell to break even:

|Average meal price = $10.35 |Maintenance = $2,213 |

|Meals sold = 8,560 |Marketing = $1,650 |

|Food = $27,653 |Insurance/legal = $1,904 |

|Food labor = $18,386 |Waste management = $988 |

|Management = $4,855 |Utilities = $3,159 |

|Supplies = $3,133 |Rent = $3,960 |

Focus on Technology

Internet users have become used to receiving “for free” information. With some online revenues razor thin, many Internet operations are interested in moving to more of a “for fee” model. But customers resist paying and marketers are looking for creative ways to blend the models. Consider Google, one of the most visited sites on the Internet and the top search engine. To produce user fees, Google has supplemented its free search with a service called Google Answers (www.google.answers.com). This service, introduced in 2006, offers more than 500 carefully screened researchers to answer your questions. The user pays a non-refundable listing fee of $.50 per question and sets a price that reflects how much he or she would pay for a well-researched answer. The user is charged this price only if the question is answered satisfactorily. Google pays three-quarters of the revenue to the researcher who answers the question and keeps the other 25 percent. Fees start at $2.50 and average around the $75 point. A recent review of questions shows a $5 fee to answer a question on whether an artist is working on a new album and a fee of $150 to find the portion of the music industry’s revenues...