Kelompok 2 : Anggi Indah Doanita lubis (1810531040)

Aldian Beni (1810531048)

Atika Gando Suri (1810532011)
Defnia Nofitri (1810532013)

a. What is relevant cost? What is the characteristics of relevant cost?

Answer :
Relevant cost is cost affect decision making
The Characteristics of relevant cost is :
1. Future Cost
2. Differential Cost

b. Identify the relevant cost based on the discussion of the President Director and the Managers above!
Answer :
The relevant cost is avoidable cost (variable cost), avoidable fixed cost, and opportunity cost.

c. If the Mini Market's space is utilized for the expansion of the restaurant, what is your recommendation? Why?
Answer :
a) Drop the Mini Market
Sales $8,000,000.00
Variable Expense $4,000,000.00
Advertising $1,500,000.00
Employees' salary expense $2,000,000.00
Total $7,500,000.00
Segment Margin $500,000.00

b) If there any expansion

40% × $5,000,000.00 $2,000,000.00
Peningkatan biaya variabel :
40% × $2,000,000.00 $800,000.00
Peningkatan CM $1,200,000.00
Hilangnya Laba Mini market $500,000.00
Tambahan Laba $700,000.00

So, Its better to drop the mini market and the mini market's space is utillized for the expansion of the restaurant.
Because, it will increase the profit from $500,000.00 to $1,200,000.00 ($500,000 + $700,000)

d. If the mini market's space is rented to other party, what is your recommendation? Why?
Answer :
Pendapatan Sewa $750,000.00
Laba Mini Market yang hilang $500,000.00
Tambahan Laba $250,000.00

Its better to rent the mini market's space to other party, because it will increase the total operating income from
 $500,000.00 to $750,000.00 ($500,000 + $250,000)

e. Based on question c and d above, which one will you recommend to the President Director? Why?
Answer :
If the mini market's space is utilized for the expansion of the restaurant
If the mini market's space is rented to other party

I would recommend to use the Mini Market's space for expansion into restaurant.
Because, it is the highest total operating income and it will increase the operating income from $500,000.00 to $1,

f. What are qualitative factors that should be considered?

Answer :
a) new competitors
b) Product dependency that is drop with the others product
c) Mini market's worker
d) the possibility of redesigning mini market's
ation? Why?

nsion of the restaurant.

operating income from

 $1,200,000.00
$750,000.00

from $500,000.00 to $1,200,000.00