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ramp08

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  1. Analytical Writing Essay2: Issue Topic: "We must reduce overhead here at the cafe. Instead of opening at 6am on the weekdays we will now open at 8am. On weekends we will only be open from 9am until 4pm. The decrease in hours of operations will help save money because we wont be paying for utilities, employee wages, or other operating costs during the hours we are closed. This is the best strategy for us to save money and remain in business without having to eliminate jobs." Essay: A decrease in the hours of operation may not be the sole resolution to decreasing the cost of operation and the sustained employment. The hours of operation should not be reduced because sufficient evidence was not provided that hour reduction will decrease overhead. Further analysis is required for the revenue potential sacrificed during the reduced hours, a breakdown of all costs of operation, and the benefits of maintaining current employment. Enacting a reduction of operation hours without further analysis of the cause for reducing overhead may not provide a solution. A paradigm supporting this is if the cause for overhead reduction due to insufficient revenue was unforeseen theft by an employee despite reduction of operation hours the cafe will still not produce revenue. A decision cannot be made until the total amount earned is calculated for the hours of operation cut. If the amount earned is greater than the cost of operation between the hours of 6 A.M. and 8 A.M. on the weekdays than the operation hours should not be limited. The hours proposed to be limited on the weekends are prime hours for individuals that may wish to get coffee or breakfast before work. Reducing hours on the weekend may be a poor decision if this is a popular time for families to enjoy a meal at the cafe. To determine whether reducing operation hours will facilitate greater revenue potential a spending budget must be provided with the proposal. The main loss of revenue may not be due to the utilities, employee wages, or costs of operation during the hours closed. Furthermore, other potential causes of lost revenue may include food, transportation, number of employees, salary per employee, entertainment for customers, and quantity of customers. A motivation for the decrease of overhead provided was the sustaining current employment. How many employees are currently employed? What is the cost of employment for each individual? How many individuals are required per shift? If overhead was reduced due to a reduction in the number of customers than it may not be required to have the same number of employees. Hours of operation should not be reduced without further details regarding the revenue potential lost for the reduced hours, a detailed budged of all current costs, and the enterprise benefits of maintaining the current employment.
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