describe the probable results implementing an across the board reduction 7% in reduction in all variable non food cost?
select all that apply
A) profits will increase in roportion to cost savigs.
[B)] total store expenses may drop
C) guest satisfaction may decrease.
D) profits may not improve as hope.
E) sales will not be affected.
F) sales may decrease
To assess the probable results of implementing an across-the-board 7% reduction in all variable non-food costs, let's evaluate each option:
A) Profits will increase in proportion to cost savings: This option may be true to some extent. If the reduction in costs outweighs any potential decrease in sales or other negative impacts, profits could increase. However, it's important to consider other factors as well.
B) Total store expenses may drop: This option is likely to be true. By reducing variable non-food costs across the board, it is expected that total store expenses will decrease. This could positively affect the overall financial performance.
C) Guest satisfaction may decrease: This option is a potential outcome. If the cost reduction compromises the quality or experience provided to guests, their satisfaction may be negatively impacted. It is crucial to find the right balance between cost-cutting measures and maintaining high customer satisfaction.
D) Profits may not improve as hoped: This option could also be true. While cost savings may be expected to contribute to improved profits, there could be other factors influencing the financial performance. If sales decrease or if the cost reduction adversely affects operations, the expected improvement in profits may not be realized.
E) Sales will not be affected: This option is less likely. It is reasonable to assume that an across-the-board cost reduction could have an impact on sales. Depending on the specifics of the business, sales could either increase or decrease as a result of the cost-cutting measure.
F) Sales may decrease: This option is also plausible. If the cost-cutting measures negatively affect the quality, availability, or overall value offered to customers, it could lead to a decrease in sales.
Considering these options, the most accurate choices for the probable results of implementing a 7% reduction in variable non-food costs across the board would be [B)] total store expenses may drop, [C)] guest satisfaction may decrease, [D)] profits may not improve as hoped, and [F)] sales may decrease. These outcomes suggest that the decision to implement such a reduction should be carefully evaluated and balanced against potential negative consequences.