Segment profitability Calculation
(Please show both the calculation process and the final answer)
Q1 What is the margin ($ dollar value) of each segment (experientials, indulgents and frugals) per customer per year for Red Lobster according to the table below?
(hint: food margin($)for each customer+ alcohol margin($)for each customer)
Q2 Which segment is the most profitable and should be target at according to results in Q1?
Q3 Calculate each segment’s total margin change ($) if Red Lobster gain 2000 new unique Experiential customers, but lose 1000 Indulgent and 1000 Frugals.
Q4 Calculate the restaurant level total margin($)change if Red Lobster gain 2000 new unique Experiential customers, but lose 1000 Indulgent and 1000 Frugals.
` of unique customers23^28:46Meals / year / customer5 . 35. 53. 8Total spend / meal / customer ( 5)24. 8818. 7814. 85*6 spend on food*6 spend on alcohol*`Margin on food57%/}57 %/}*6 Margin on alcoholMargin for each Segment per customer per?? ?? ? ??? ?year ( s)Change in the number of customers2000- 1000- 10ODMargin Change in each Segment ‘s !? ? ?? ? ?? ? ?Total Restaurant LEVEL Margin Change (‘s )? ? ?
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