La Marmotte

Abstract

Leonard Funk has been given full operational control of La Marmotte, a canteen restaurant in the French Alps. Based on the information provided in the case, he needs to decide whether to shut down for the summer and/or increase production during the winter.

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2023 Sage Publications, Inc. All Rights Reserved

You are not authorized to view Teaching Notes. Please contact your librarian for access or sign in to your existing instructor profile.

Resources

Exhibit A: Variable Costs (Selected Range)a

Students should complete the cost analysis table below.

Output

Costs

Revenue

Profit

Daily

VC

FC

TC

AVC

ATC

MC

MR

AR

TR

π

86

1,244

87

1,326

88

1,411

89

1,499

90

1,589

91

1,682

92

1,777

93

1,876

a. The formula for marginal cost is M C = T C Q but a valid approximation is M C = Δ T C Δ Q .

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2023 Sage Publications, Inc. All Rights Reserved

locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles