Case
Teaching Notes
Supplementary Resources
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
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 but a valid approximation is .
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
