Category: Pizza

Significance of Cost Allocation

Cost allocation entails a way of attributing costs to specified cost-centers in an organizational setting. Usually, the allocation of costs by companies is necessitated by the need to adequately satisfy sharing of relevantly incurred costs. This can be likened to spreading costs across end-users. The allocation of costs is therefore a mere assignment of costs to a number of units which constitute a company.

In a multidivisional business which requires security services for protection of its infrastructure, for instance, the various units that constitute the business will be incorporated in costs for securing the required security. Allocating costs to the various departments of a company is usually done arbitrarily. Due to the arbitrary nature of allocating costs, it is mostly considered as a sort of cost-spreading (Yuawa, 1991; Maskell & Baggaley, 2003; Johnson, 2011). In the past five or ten years, there has been a noteworthy attempt aimed at enhancing bases for allocating costs by companies (Kaplan & Bruns, 1987). This paper considers cost allocation as has been put to effective use by California Pizza Kitchen (CPK).

Considered Cost Allocation: Cost Allocation at California Pizza Kitchen

CPK is a household name in restaurant service, and offers California-style cuisine, represented through creative pizzas, pastas, soups, sandwiches, appetizers, and desserts. Opened on March 27, 1985, by the attorneys Rick Rosenfield and Larry Flax, CPK is currently owned, licensed or franchised at 265 locations in 321 states and 10 foreign countries. This makes it a chain company with networked units that are centrally controlled from its managerial framework. The chain has two directions of development, the full service restaurants, and the CPK/ASAP concept which focuses on the fast-casual service in significantly smaller restaurants. As of 2010, the company employs approximately 14,600 employees, among which 190 employees are working in the companys headquarters in West Century Boulevard (CPK, 2010). CPK has a market value estimated at $343 million, where the revenues in 2010 were $642.2 million, with a non -GAAP net income of $17.1 million (CPK, 2011; Forbes, 2011).

The consideration of CPK here for an analysis of its costs allocation is limited to the year 2010, and is based on the companys systemic administration through which it has achieved distinct allocation of cost to its various sects. In any case, the considered numerical values as well as the units to which the values apply are only arbitrary.

The performance credibility and an effective cost allocation of CPK have been reflected in its rating by Forbes magazine as being self-made, and on enlistment as one of Americas best small companies. This rating takes into consideration the fact that CPK has annual revenues in the range between $5million and $750 million, being publicly traded at least for a year. The company also has created for itself an appreciably wide marketing platform which constitutes a demography that is economically, naturally, environmentally, technically, and socially suitable for an effective marketing of its products.

Selected inputs for this analysis include cost of labor, the salary of managers, as well as cost of raw material for producing the products. The imaginary costs as to this effect are $60000, $24000, and $12000. These costs are factually based on employees and direct-employees. Direct-employees are allocated 120.0; 25.0 of this is for mixing and for production-control 5.0 is allocated. Packaging takes 35.0. The factual costs of the materials are fixed at 45,000.0, the packaging process takes 10,000.0 and then mixing of the product and production-control takes 5000.0. The allocation of cost could as well be shown as in table below:

Table of imaginary costs allocation for California Pizza Kitchen for the years 2010

From the table, it implies that in allocating the cost, the packaging unit is assigned the highest share.

Implication of the Analysis

This study has proved that the articles in ProQuest are effective in enabling decisions by users of the financial statements.

Reference List

CPK. (2010). California Pizza Kitchen, Inc. and Subsidiaries 2009 Annual Report on Form 10-K. California Pizza Kitchen.

CPK. (2011). California Pizza Kitchen Announces Financial Results for the Fourth Quarter and Fiscal Year 2010. California Pizza Kitchen. Web.

Forbes. (2011). The 200 Best Small Companies: California Pizza Kitchen. Forbes.com LLC.

Johnson, H. H. (2011). Consortium for Advanced Manufacturing-International. New York: Longman.

Kaplan, R. S., & Bruns, W. (1987). Accounting and Management: A Field Study Perspective. Harvard Business School, 27, 237- 238.

Maskell, P., & Baggaley, Y. (2003). Practical Lean Accounting. New York: Productivity Press.

Yuawa, K. (1991). Cost accounting. Journal of Bank Cost and Management Accounting, 4, 1.

The contingency tactical plan prepared for the proposed company, Dough Pizza, which is a fast-food restaurant planned to be opened in Lynchburg, VA, is based on the estimations of the initial capital requirements and assumptions regarding its business and financial performance in the first year of operations. The contingency tactical plan evaluates the anticipated changes in the companys earnings based on different projected growth rates.

Start-Up Financing

Based on the assumptions made regarding the proposed business venture, the start-up financing required by the owner is estimated in this section of the report. It is crucial to prepare an investment budget to ensure that the owner can arrange sufficient finances to carry out the project until the end. The owner has two options for financing the project, which is equity financing and debt financing (Broome Jr., 2016). The preference will be given to the equity financing which means that the owner will invest in setting up the new business by using personal equity. The owner is of the view, The rich rule over the poor, and the borrower is slave to the lender (Proverbs 22:7).

However, the second option of acquiring finance from a bank will not be overlooked entirely, and if the business requires additional funds in later years, then the management will borrow from a bank. The cost of debt will be the primary factor affecting this decision as it is understood that start-up businesses face the difficulty of getting a bank loan because of their limited credit history (Bamford & Bruton, 2018). The start-up funding requirement is provided in Table 1 given below.

Table 1. Start-Up Funding Requirement.

Table 1 indicates that the management will have to allocate $200,000 to the proposed business. The primary capital expenditures include leasehold improvement and equipment. The economic values of these expenditures will be depreciated on a straight-line method over the next ten years. The depreciation charge estimated is at $12,000 per year. The retail space selected for opening the new restaurant is available at $1.14 per sq. ft. and its total floor size is 2,800 sq. ft. (Lynchburg city county retail space for lease, 2019).

The total yearly rent is estimated to be $38,304. The reason for selecting a larger retail space is because the management wants to offer a dine-in experience to its customers in addition to its takeaway services. All other expenses are estimated as per the business plan. The management will carry out various marketing activities before the business is launched.

The company must test the market before it initiates its primary business activities. It will help the management to plan out its contingent business strategies and also formalize its exit strategy in case the business fails to generate the expected earnings. The company will require $21,634 in cash in hand. It is the minimum cash balance that the company will maintain at the end of the financial year. It will ensure that it can sustain its business and purchase the required inventory for food preparation.

Sales Forecast

The sales forecast given in Table 2 indicates that the restaurant will achieve growing sales over the next five years. There are two sources of revenue identified for the proposed business including food sales and drink sales. It is estimated that 70% of the companys sales will be generated from food sales and the remaining 30% will be from drink sales. The companys food sales are expected to grow by 50% in Year 2 and then increase at a steady rate of 30% per year in the next three years. Furthermore, the companys drink sales are expected to grow by 30% in Year 2 and then increase at a steady rate of 15% per year in the next three years.

The reason for the high growth rate in the second year is that the company will attract more customers due to the brand hype to be formed after the initial public relations and marketing activities. In later years, the restaurant will grow based on its brand reputation, customer satisfaction, and high food quality.

Table 2. Sales Forecast.

Proforma Income Statement

The proforma income statement for the first five years of operations is given in Table 3.

Table 3. Proforma Income Statement.

The company will incur a net loss in the first three years. However, the profitability will improve and it is forecasted that the company will have a growing net profit from Year 3 onwards.

Contingency Plan #1

Down-adjustment of Sales

The revised proforma income statement is prepared in Table 4 based on the assumption that the company will not achieve its anticipated sales level. Therefore, its sales are adjusted downward.

Table 4. Revised Proforma Income Statement (Downward Adjustment)

Steps to Minimize the Negative Impact

The revised proforma invoice shows that the company will not be able to achieve profitability in the next five years. The management can take the following steps to minimize the negative impact of poor sales.

• Increase marketing and public relation activities.
• Revise its pricing strategy by lowering the prices of its food items.
• Sign up on different food delivery websites to improve brand exposure and also increase its sales.
• Improve or add new food choices.
• Launch promotional or combo deals for customers.
• Lower the labor cost by hiring a fewer number of employees with better skills.

Contingency Plan #2

Upward-adjustment of Sales

The revised proforma income statement is prepared in Table 5 based on the assumption that the company will exceed its anticipated sales level. Therefore, its sales are adjusted upward.

Table 5. Revised Proforma Income Statement (Upward Adjustment)

Steps to Maximize the Opportunities

The management can take the following steps to maximize the opportunities arising from high-level sales.

• Open up another fast-food outlet.
• Provide training to its staff to improve customer experience.
• Engage with customers and make changes in the business accordingly.
• Carry out marketing activities to promote its brand and challenge its competitors.

Conclusion

The contingency plan provided in this report highlights the measures that could help the company in achieving its mission and objectives. The management should plan out its exit strategy if the company fails to produce the desired level of sales and profit. The management should be prepared to cut its losses, but before doing so, it should take steps that could help to sustain the business. The plan also emphasizes strong planning to take advantage of the opportunities in the market.

References

Bamford, C. E., & Bruton, G. D. (2018). Entrepreneurship: The art, science, and process for success (3rd ed.). New York, NY: McGraw-Hill Education.

Broome Jr., J. T. (2016). Chapter 38: Making a statement how to create financial statements. In T. S. Media, Personal training business: step-by-step startup guide. Irvine, CA: Entrepreneur Press.

Lynchburg city county retail space for lease. (2019). Web.

Pineapple was made to belong on pizza, no debate required. Its sweetness perfectly mixes with the saltiness of the pizza, thus creating a perfect combination. The tropical fruit plant, pineapples, unified with the snack of a pizza provides a sweet flavor to the taste profile, allowing the consumer to a burst in the sense of flavor. The pineapple all around is a healthy food choice, so the joining of this mix has health benefits, with it having the savoring taste of a pizza. People should evaluate this debatable food choice and see for themselves what they are missing out on.

To begin, the pineapple on pizza provides as a healthy source of fruit on the pizza. It has tons of nutrients such as Vitamin C, where it has 131% of the daily dose. This Vitamin C is important for the growth and the development of the body, serves as an absorption of iron, which is essential to having a healthy immune system. Secondly, our bodies naturally crave sugar because we use those sugars as a source of energy. Pineapple has sugars in it, actually 89 grams, where pizza only has slightly under four grams of sugars in it. The sweetness of the pineapples and the salty pizza serve as a marvelous combination. Lastly, our taste buds have a special gift where multiple flavors can be tasted at the same time. This is very useful when eating food combos with different flavor variations. Our taste buds serve in the case of the pineapple mixed with the pizza because the taste buds recognize the contrasting flavors which join to make a delicious treat for the taste buds. The pineapple on pizza combination is just like any other, like peanut butter and jelly. Our mouths recognize the different flavors, and realize how the pineapple has a perfect harmony with the pizza.

The combination of pineapple with pizza is without a doubt one of the best types of pizzas. Though the combo may not seem like it, the sweet and salty mix is just right. Other than it being delicious, it is also very beneficial for your health. Pineapple pizza should not be judged based on its looks. Pizza fanatics should try it first because though it may look unsatisfying, the taste makes up for the looks. The warm pineapple that sits on the surface of the pizza provides the extra taste that is necessary for perfection. The blend of sweet pineapple with the salty pizza helps equalize the flavor making this pizza well recognized. Pineapple on pizza sounds ridiculous, but once tasted, any idea about it being not accepted will be declined, and in contrast will be known as being the best type of pizza. This pizza is without a doubt unique, which deserves more respect than it owns.

To sum up, pineapple placed on pizza is evidently made to satisfy our taste buds. Overall, this is the second-best type of pizza. I actually do not like pineapples in general so I could not tell you if it is good from my point of view. If truth be told, cheese pizza is the best type of pizza that exists. Pineapple on pizza is not even that bad, there are worse things than pineapple being used on a pizza: tuna pizza.

Pizza is the most famously delicious dish in Italian cuisine. It is considered an antique plate since it has been cooked for many centuries now and has been constantly evolving. Centuries ago, pieces of flatbread were seasoned in a traditional but in an exquisite way, only for those who did not have the money to buy ‘proper’ dishes, and where in constant movement searching for new jobs.

This changed at the start of the 19th century in Naples (city in Italy) where the pizza that we eat today was born. During this period Italy was ruled by the Bourbon kings, and Naples had become one of the biggest cities in the country, spreading at a rapid state. This was when the urban economy started to struggle to keep up, which meant that a large amount of people had to live in poverty. People who lived in these conditions where constantly in a rush and seeking for new jobs, so they needed food that they could afford and was fast to eat. Pizza met their needs. Pizza was only sold in streets by hawkers, which cooked pizza only with garlic, lard, salt, and sometimes tomatoes. Tomatoes were something new because it has recently added to the market, so people had an unsure and unpopular opinion about the product, for this reason the low prices. Normally people who ate pizza were the poor and were normally looked down by royalty and visitors. However, all of this changed after the Unification of Italy (a political and social movement that consolidated different states of the Italian peninsula to form the Kingdom of Italy in the 19th century).

By the end of the 19th century, Queen Margherita went to Naples. She was given every day the same dishes for all her meals and started to get tired of these. The Queen demanded to have them cooked some traditional food of the area, this was when she was given three different types of pizza. The first included cheese of horse milk, and basil. The second included whitebait, and the third was with tomatoes, mozzarella and basil. The queen was completely shocked about how exquisite the dish was. The one she most liked was the third one, and for this reason this type of pizza was named after her ‘pizza Margherita’. This changed the ideology towards the Italian cuisine during the time. By the approval of the Queen this meant that now the royals can enjoy the dish to, but more importantly it brough a new dish into their traditions. Nonetheless, pizza was slowly moving out of Italy. It was America that fostered pizza as a second home.

By the start of the 20th century Italian started to immigrate towards the East Coasts of the United States, and in 1905 the first pizzeria called ‘Lombardi’s’ was opened in New York City. After a couple of years Americans started to adopt this style of food, creating new tastes, combinations and needs, it started growing all around the country specially in restaurants, which were often not from Italian background. After the 1950’s the United States economy experienced a boom and there was a large increase in economy and technological advancements which helped transform pizza even more. As the income of people was increasing there was also an increase on the demand of fridges and freezers. This promoted the idea of frozen pizza, which changed the recipe of pizza’s. Instead of having scattered tomatoes, it now had tomato paste, and a new cheese which helped withstand freezing. Another main change was the fact that people were starting to commercialize the product by having delivery services. Examples include Domino’s, Papa John’s, Pizza Hut, etc.

Today’s pizzas are completely different from what they were hundreds of years ago, but it is one of the most delicious dishes the Italian cuisine can offer, where economic and social changes are seen.

Trying a new restaurant can go two different ways. The first way it could go, you enjoy the food, drinks, and prices. The second way your visit could go, is by you not enjoying the food, drinks, or prices and the way you would feel is like time and money were wasted. I am always a spectacle when it comes to trying pizza from new places. One day I discovered Mod Pizza restaurant and now it is my favorite place. In this restaurant evaluation, I’m going to answer the question why this restaurant is the best.

First, I think Mod Pizza is the best restaurant because of the three pizza size options that are available. The Mini size is a decent size for kids or those with smaller appetites at 6 inches, the Mod size is an ample adult size at 11 inches, and the Mega Dough is a thick crust at 11 inches for very hungry adults. All of these sizes can be replaced with gluten or cauliflower crust for those looking for healthier options. One of the perks of eating at Mod Pizza is that you can add as many toppings as you like at no extra charge! Another advantage of eating at Mod Pizza is that if a person does not want to eat pizza, they offer salads along with desserts.

Second, the food is made right in front of you and this allows zero room for mistakes on your order. Let me walk you through the process. The first thing they do is write down your name and the size of crust you feel would satisfy you the best. Then, you have the option to choose what type of sauce you would like to put on the base of your pizza (marinara, alfredo barbeque, etc.). Next, they offer different types of cheese, meat and vegetables to put on the pizza. After this you have the option to add in an extra flavor of sauce on to your pizza before it goes into the oven.

Finally, when they have your order in the oven, you have the option to choose any drink of your choice to go along with the delicious pizza you created. Of course, fountain drinks are an option, but I would recommend trying the house-made teas or lemonades. Another great choice for your beverage would be the hand spun milkshakes; they come in vanilla, chocolate, strawberry and my favorite, coffee. The last option for the type of drink to order with your meal would be the beer or wine, that is brewed locally.

Unfortunately, Mod Pizza does not advertise like other pizza places like Pizza Hut, Domino’s Pizza and Papa John’s Pizza. These other companies advertise on television, social media, email, and radio. More people are attracted to these other establishments because of the offers that are advertised. These pizza companies usually offer specials on a medium two-pot pizza and will charge extra if you want to add more to your order. Mod pizza does not advertise or offer low bids because you get the lowest price for any number of toppings on your pizza, regardless of the size of the crust.

Taking a chance on a new restaurant and deciding where to eat can be a difficult decision. Once I made a good choice and did not lose. Mod Pizza is a great place that no other pizzeria can compare to. This is an example of an excellent combination of a fair price and high quality.

Some kids eat meat and vegetables and some don’t, but pizza is a whole new story everyone loves pizza. Pizza is one of the world’s most favorite food. There is a pizza in every country in the world. However, Naples is still the birthplace of pizza. I would like to devote my essay to this unique dish.

Speaking of pizza, the first thing to note is that it is a dish made from a roll of dough topped with a delicious tomato sauce, cheese and all kinds of decoration. It is heated in a wood fire oven. Pizza in Italy is used in ceremonies and for remembrance, as well as being the favorite food in restaurants. Modern pizza was invented in Naples, and since then the dish and its variants have since become popular in many countries. It has become one of the most popular foods in the world and a common fast food item in Europe and North America that can be purchased at pizzerias.

Speaking about the history of pizza, it should be noted that pizza was made in 1889, when King Umberto I and Queen Margherita visited Naples. They asked for a pizza and there Esposito made the pizza with tomatoes, mozzarella cheese and basil, it was named Margherita after Queen Margherita. Not long after, Italian immigrants began to deliver pizza all over the world, including to Spain, France, England and the United States. First it wasn’t popular, but when soldiers came back from the Second World War, they start looking for food they had begun to eat overseas. In 1905, Gennaro Lombardi opened the world’s first Italian restaurant, located in Manhattan.

As for the types of pizza, pizza comes in different flavors such as Margherita, Hawaiian, Meat lovers and many more. People argue about what is the best pizza, but people have their own opinions. Pizza Margherita dates back to 1889, when Queen Margherita fisted Naples and was given a pizza. This pizza involves tomato sauce base, mozzarella cheese and basil leaves. Margherita is an all-time favorite pizza.

As for another popular type of pizza, Hawaiian pizza was invented in Canada in 1962 by Sam Panopoulos. Hawaiian pizza is a pizza topped with tomato sauce, cheese, pineapple and ham. Sam Panopoulos was a Canadian of Greek descent who opened his Satellite Restaurant in Chatham, Ontario.

Today pizza is one of the most famous and favorite food in the world. Starting from Naples and ending up almost everywhere in the world, pizza is definitely a dish for everyone, including vegetarians.

Letter of Summary

In this paper, we report on how to solve the famous Pizza Box Problem. The analysis starts with a brief description of the need to solve the Pizza Box problem and then proceeds to a discussion of the optimization concept. An analysis of the Pizza Box problem then follows using the required mathematical formulas and procedures. The results and discussion part follows the analysis section. In this section, we discuss the relevance of mathematics in solving real-life solutions and the pioneers of such mathematical techniques. In addition, we study the need for calculus and pre-calculus lessons for students. This is then followed by the conclusion section.

Body

Most companies and organizations have been faced with the problem of finding the maximum volume of a box that is constructed from rectangular pieces of cardboard. This problem involves sticking equal squares from each corner of the rectangle and then folding up the resulting sides as described by Dundas (1984). This kind of problem can be solved through an expert application of Calculus. Undeniably, calculus can be useful in devising efficient as well as practical construction approaches. In this report, we describe the application of Calculus in solving of the pizza box optimization problem.

One of the grand uses of calculus in the real-world setting is optimization. According to Daley, Gutierrez, and Wilkerson (2015), optimization is a concept that requires the use of minimal materials for maximum effect. In this case, the use of minimum cardboard material will be used to manufacture a pizza box having the largest volume. Calculus can be used as a tool to maximize, or in some cases minimize (technically referred to as optimize) a situation. According to Delfour and Zolésio (2001), getting a higher volume or occupancy rate of a given container is a vital goal for most businesses dealing in packaging and shipping of goods. Manufacturers and Pizza firms have to ensure the products fit in the 3D box vessels having optimal placement in order to ship or transport products at the lowest cost possible. The main problem of fitting the products is often referred to as a 3-dimensional packing problem (Eley, 2002; Pisinger, 2002). Notably, the overall effect is a reduction in the production cost of the container or pizza box, as well as a reduction in the cost of transportation or shipment.

Normally, optimization as well as heuristic approaches have been applied in solving Pizza Box optimization problems/issues. In 3D packaging problems, some studies assume the existence of an unlimited capacity (Electric Teaching, 2013). As noted by Dundas, most calculus students have been faced with the problem of finding the optimum volume of a box that is constructed from rectangular cardboard pieces by cutting equal squares from every corner, and then, folding up the cardboard’s sides (1984). The most suitable method of construction is shown in figure 1 on the next page.

If we cut the cardboard along the solid lines and then appropriately fold it along the dotted lines then the use of appropriately-placed staples can secure the box to be fairly usable. In order to construct the pizza box, we adopted a no-top construction methodology by cutting out T by T-long squares from the cardboard’s rectangle having a length I as well as width w, where w < I. The ensuing volume is given by the following formula:

For a value of T < w/2, for the Pizza Box construction, its volume is computed as follows;

In this problem, we consider the value of T, which is the volume of the box, to be half as large by means of the Pizza Box technique, and the maximum is considered to occur at the same value of T in all of the cases. With a little iteration, researchers have found that restricting the rectangular piece of cardboard’s shape effectively limits the box’s maximum volume (Daley et al., 2015). However, this is not applicable in a real word situation. In order to allow for variable rectangular pieces’ dimensions as well as various sizes of the corner pieces, calculus must be used and it must involve various variables. The approach that was considered for this process was as elaborated in the next paragraph.

Suppose cardboard of A square inches is to be used for the construction of a Pizza Box by means of the Pizza Box methodology and fixing the height of the Pizza Box at T inches, we must find the dimensions of the rectangle that if used would optimize or maximize the volume of the Pizza Box (Optimization Problem, 2011).

From figure 1, we can take w to be equal to A/l. In other words w=A/l. Therefore, we shall have the following;

We then take the value of V'(1) = 0 whenever the value of I = m. Therefore, the required dimensions for the cardboard are

. Using

cardboard, we would like to find the required height, T, which would optimize this volume. Therefore we begin as follows;

Therefore,

for

, and the optimum volume for the Pizza box is given by the expression

For this exercise, we use hypothetical dimensions for the Pizza Box problem. We use the area A of the box to be 144 square inches since this gives us a maximum volume of 64 cubic inches whenever I = w = 12 and the height, T = 2. The other method similar to the Pizza box problem method is the Popcorn Box method but that is beyond the scope of this report (Daley et al., 2015).

As noted in the analysis section, the Pizza Box optimization problem often obtains its solution from both the heuristic and optimization techniques. In 3D packaging problems, some studies assume the existence of an unlimited capacity (Electric Teaching, 2013). As noted by Dundas (1984), most calculus students have been faced with the problem of finding the optimum volume of a box that is constructed from rectangular cardboard pieces by cutting equal squares from every corner and then folding up the cardboard’s sides. In this section, we also discuss some of the discoveries and mathematical expressions that have allowed problems such as the Pizza Box problems to be solved. The pre-20^th century saw great events that brought about various inventions and discoveries, especially in the mathematics field. There were various people who made great contributions to the mathematics field which are applicable and still in use to date.

Therefore, this paper will look at two great events and the contributors to the events in the mathematics field. About 250BC, there were various inventions and contributions by Archimedes who were considered as one of the great mathematicians in history. He is still honored for the various contributions he made in geometry, mechanics, physics, and technology. Another contribution was the discovery of how to find the volumes of spheres, and he went ahead to discover the exact pi value, which he calculated as well as devised the notion of mathematical exponents. A Greek letter, Pi, is used in describing ratios of diameter as well as the circumference of a circular object. He pinpointed pi value as being between 3-10/71 and 3-1/7. He arrived at this value by the inscription of a-96 sided polygon inside a circle. The discoveries were published in the measurement of the circle. He also discovered the principle of buoyancy. When he discovered it, he went out shouting Eureka in the streets. This was the principle of water displacement that he discovered when he was bathing (Ferris, 2010).

Moreover, he made it possible to find out the area bounded under a parabolic curve. He came up with the idea of using extraordinarily creative reasoning involving constructing an infinite number of triangles inscribed in a circle that takes up the area that was in the parabolic part. Markedly, this contribution was of great importance particularly to Isaac Newton who developed calculus (Films Media Group & KM Media, 2011). He also found out how calculations of areas of circles could be done as well as establishing the formula that would be used when determining volumes of spheres and cylinders. He went ahead to discuss properties of Archimedean spiral that he described as being the distance from a point that is fixed for instance 0 of any point, say P on the spiral, is normally proportional to the angle that is located between OP and another fixed line O. Through this evaluation of areas that he made that involved the spiral he paved way for the development of calculus that was put to a book in the seventeenth century (Ferris, 2010).

In order to complete the Pizza Box problem, students must have great calculus and pre-calculus knowledge. Anyone who wants to do pre-calculus and calculus would definitely do it successfully depending on the previous foundation in mathematics that incorporates the basic information required. A learner should not just forget the fundamentals of Calculus immediately after a test or examination as this might position a student behind most of the time. It is always important to make sense of whatever the students learn particularly in mathematics. The primary building blocks of mathematical literacy include understanding times-tables or basic arithmetic facts that serve as the core for nearly all mathematics learning that follows afterward. However, rote learning does not link properly with the current digital technology, which has made learning easier by doing grunt work for learners. This form of writing presents some pros and cons of learning to work pre-calculus and Calculus problems by hand.

According to “Classroom Professor”, it is undeniable that arithmetic begins from a particular foundation, which includes principles for the numeration system, operators, symbolic system, and all other basic information. Utilization of the basic calculus thought remains vital for students. A number of people believe in the mathematical concept and therefore using the manual process of teaching calculus ideas will result in massive universal support. According to Orlin (2013), most of all, they complain that rote learning has become taboo, rather than accepted as a healthy part of a balanced scholastic diet.

It is essential to understand that manual learning of using pre-calculus and calculus by hand improves focus mental attention, focus to detail, and is free from distractions, thus making it an exceptional mental workout. Understanding basic ideas and arithmetical principles can never be substituted with digital technology since the brain is more superior to the technology unless a learner has learning or mental disability. Students who do not understand the fundamental concepts of Calculus may hardly understand numerous related topics or basic arithmetical concepts that were crucial in the primary mathematics curriculum. Mental computational abilities tend to eliminate issues of struggling to reach an understanding of concepts the learners could have learned in lower grades.

This report has shown the need and importance of calculus and mathematical problems in solving complex real-life problems. The Pizza Box problem applies calculus in solving a seemingly complex packaging problem. The cost reduction and material optimization that is achieved through calculus-inspired design is a true testimony of the power of mathematics in solving real-life problems. Every student must, therefore, take their calculus and pre-calculus lessons seriously since they hold solutions to some of the world’s common problems.

References

Daley, T., Gutierrez, M, & Wilkerson, M. (2015). Pizza Hut Project. Web.

Delfour, M. C., & Zolésio, J. P. (2001). Shapes and geometries: Analysis, differential calculus, and optimization. Philadelphia, PA: Society for Industrial and Applied Mathematics.

Dundas, K (1984). To Build a Better Box. The College Mathematics Journal, 15(1) 30- 36.

Electric Teaching. (2013).Calculus – Optimization Open-Top Box Max Volume. Web.

Eley, M. (2002). Solving container loading problems by block arrangement. European Journal of Operational Research, 141(2), 393-409.

Ferris, D. (2010). The Contributions of Archimedes in Geometry. Web.

Films Media Group & KM Media. (2015). Dimensions that Maximize the Volume of a Box: Calculus-Applications of Derivatives: Applied Optimization.

Optimization Problem – Max Volume of a Box Made From Square of Material. (2011). Web.

Orlin, B. (2013). When Memorization Gets in the Way of Learning. Web.

Pisinger. (2002). Heuristics for the container loading problem. European Journal of Operational Research, 141(2), 382-392.

The paper is to identify the ‘Pizza Store Layout Simulation’ scenario statistics and seek out the performance metrics. Also an alternative to the process is developed and discussed on the reasons of substitution. The main feature utilized in the context of studies is learning curve concept. Using it, the performance of ‘Pizza Store Layout Simulation’ as well as alternative to it is analyzed. Study on the topic starts with learning curve concept travels through its utilization on current method performance analysis and alternate one as well.

The notion behind learning curve concept is to the individuals “monitor who perform repetitive tasks exhibit an improvement in performance as the task is repeated a number of times.” The theory of learning curve concept relies on mainly three basic postulations stated below:

1. “The time required to perform a task decreases as the task is repeated,
2. The amount of improvement decreases as more units are produced, and
3. The rate of improvement has sufficient consistency to allow its use as a prediction tool.” (The learning curve, n.d).

It has seen an augmentation in the procedure of efficiency in such an approach so that quantity of goods manufactured is increased to twice the previous production within a shorter period of time due to a considerable time of execution. The same can be reexamined as the pace in which analysis is taken place by giving priority to consistent reduction in delay. The calculations are started with determination of slope of the curve under analysis. It is computed through the calculation of difference between rate of learning and percentage arithmetic cost. “The constant percentage by which the costs of doubled quantities decrease is called the rate of learning.” (The learning curve, n.d). The measurement is in such a way that 90 percent learning curve is said to exist when delay for the units to become twice is lowered by 10 percentage.

The fact to be observed is that quantity of decrease in cost can never be made the same but possibility is only on the turning down of effect of cost by considerable increase in mass. The truth of profit and loss is not fully depicted in cost incurred but on quantities dispersed. Now, to start with the analysis of Pizza Store Layout Simulation the table of process performance is shown below.

The simulation is being carried out to achieve profit with minimum average waiting time and average queue length. The optimization of resources and managing them with efficient operational management techniques is very much essential in this analysis.

Let us analyze the initial situation and during 1-2 weeks. Initially, we had 14 tables for 8 with 4 wait staff and 2 kitchen staff. The profit was 1,065$ with a wait time averaged to 11.24 minutes accompanied by a sale loss of 1170. The utilization of tables was at maxima with an average queue length of 3.12.

Later as a first stage of optimization, the number of tables to accommodate 2 and 4 are varied in such a way to achieve optimization in that regard. The arrangement is changed to get a different profitable effect. By adding 8 tables for 2 after reducing 4 tables for 8 and keeping wait staff to 5 a real time change in results which were favorable was attained. It was observed that an increase in profit as well as decrease in average waiting time is achieved with no doubt. The average waiting time and queue length was seen as follows:

The result of those at the end of this step of optimization was given as

Profit came upto 1427$ with loss of only 525 sales with average queing length reduced to 2.61 and average wait time to 5.09 minutes. But still optimization is possible through regulating the number of ovens both manual and plax.

Plax ovens have twice the efficiency of manual ovens and even requires shorter delay of usage. Also the option of menu point can be utilized which will bring about tremendous difference in the speed of all activities. After optimizing in these aspects, the result was obtained as follows.

Again the profit was increased to reach 1601$ with average wait time reduced to 4.55 minutes and average queue length to 2.67. The loss of sale reached down to just 405 along with eliminating two manual ovens to take a substitute of just one plax oven. Thus a real time cahnge is experienced when compared to the initial status.

Again there is option of adding space to the Pizza place at congestion times of celebrations and promotion programmes. The annexure of nearby corner with somethings extra like cream puffs can add to sales and space for the place.

The profit is figured to a doubled status after this optimization. The loss of sales is 705, it can be ignored as it is a rushy time anf even the wait time and queue length is very much reduce and reached 3.14 minutes and 2.79 respectively that explains the maximum possible optimization through keen operations management.

Now coming to learning curve conceptual approach for our case analysis. The minimum average wait time is 3.14 minutes and highest is 11.24 miutes. The slope of wait time curve can be determined as the ratio of differences:

(11.24 – 3.14) / (8 – 0) = 1.0125

i.e. there is a decrease in 1.0125 minutes of average wait time. Therefore rate of learning can be calculated as

1.0125 / 11.24 = 0.09008 ~ 0.09 = 9%

That implies, 91% learning curve. Similarly, for increase in profit learning curve has to be determined. The highest and lowest values of profit achieved are 2051$ and 1065$ respectively. So the slope of profit curve is given by

(2051 – 1065) / (8 – 0) = 123.25$

i.e. an increase of 123.25$ occur every week. The rate of learning can be now calculated as

123.25 / 2051 = 0.06009 ~ 0.06 = 6%

Thus a 94% learning curve is exhibited.

The study conducted on Pizza Store Layout Simulation took through the possibilities of improvements in average waiting time and profit with the increase in quantities. The number of tables, staff and equipments like ovens were all adding to the optimization of our case. The strategies of achieving improvement with existing assets and backups with application of a little amount of keen operational supervision in it, better results can be made. The fact which is illuminated among these dug out operational management ideas is that no complete sales or profit is possible, only a balancing among the requirements and availabilities can be achieved; so the same is the goal of an operational manager.

Reference List

The learning curve. (n.d). Federal Aviation Administration. Web.

Introduction

Pizza preparation can be one of the most daunting tasks at home. As one of the best foods for human consumption, its preparation requires great attention. The basic component in pizza making is baking flour. To add flavor, other ingredients are needed depending on what taste is required. The innards which are added to the prepared dough might include various food toppings and cheese. Stepwise explanation of preparation is vital for making pizza dough up to the baking process. Therefore, a clear exposition on a pizzeria preparation procedure should begin with the dough-making process.

Preparation of Mixtures to Be Used for Pizza Making

The fundamental step in pizza preparation is ensuring that one has mixtures required for it. To prepare the first mixture, a medium bowl is needed, and little olive oil is poured to it. Pour half a liter of warm water of about 120 degrees Celsius into the medium container, followed by six and twelve grams of yeast and sugar, respectively. In another larger dish, add six hundred and twelve grams of wheat flour and salt in that order and then mix. Consequently, you have two bowls of mixtures, a medium one containing warm water, yeast and sugar and the larger pot holding a mixture of salt and wheat flour.

Then, your objective as a pizza maker at this particular instance should be combining the two mixtures. In your large bowl containing the mixture of salt and wheat flour, make a well at the center of the blend using your fingertip. Gradually, pour the mix from the medium bowl into the well you have just made with your fingertip. Add 360 milliliters of olive oil to the combination in the large bowl. Using a kitchen fork to pull the drier parts of the mix to the wet concoction, combine thoroughly for five minutes. Finally, the blend is made in readiness to be kneaded by hands.

Dough Making from the Already Prepared Mixtures

Next, you aim at ensuring that the blend results in a soft dough. The mixture you have at this particular time is uniformly mixed. Add little flour to a kitchen table where you intend to knead the mush using your hands for five minutes. In kneading, you should use the heel of your fists to push the concoction down and forward. Turn the paste around till it is a little tacky. The resulting preparation is now to be covered for some time.

As the dough has been well kneaded, preparations are made to cover it. Wash the large bowl which you had initially used in mixture preparation and dry it using a clean piece of cloth. Oil the bowl on the inner side with your olive oil. Put the kneaded mush into the dish and cover with plastic wrap on top of it. The paste should be left in a covered position for one to two hours, depending on the ambient temperatures and ingredient preparation methodologies. Eventually, you have made well-covered kneaded dough and given it time to rise and double its size due to the yeast applied.

At last, the dough is made, and it is checked after every twenty minutes, within two hours. Poke the mush using your hands, and if indentation is left, then that shows it is ready. Once this has been ascertained, use a kitchen knife to divide it. The larger the pieces cut, the bigger the pizzas, and the smaller the slices cut, the tinier the pizzas. Nonetheless, minuscule nubs sliced are more expedient to handle, especially for domestic purposes. At this point, shape the cut bits into balls for every single pizza. Envelope them with a moistened cloth and leave them for ten minutes. In examining whether the dough orbs are ready, you shall prod them to check for depression on them.

Preparation and Baking of Pizza from Dough Balls

Lastly, pizzas are to be made from balls and baked. Clean the pizza pan before sprinkling it with semolina which is a ready-made powder through the process of wheat milling and usually stocked in retailer shops. The additive provides a chewy, crispy taste for the pizza to be made. In order to flatten the center of the dough, pull the ends of the dough using your hands. Continue adding more semolina for efficient preparation of the pizzas, making sure that thinness is uniform. As the unfurled dough is now flat, spread your favorite innards on its top part and place the pizza pan with its ingredients in a baking oven for five minutes for those five hundred degrees Fahrenheit -temperature ovens. The pizza will be ready, and you should serve it with any drink of your taste.

Conclusion

Pizza making is a stepwise procedure which is easily comprehensible. Two different mixture bowls are needed specifically for paste preparation. The mixtures are important because they are blended once again to make the paste. Later, orbs of dough are made from the mush by cutting it into required sizes. The balls are then spread uniformly in pizzeria pans, and such ingredients as minced meat, black olives, mushrooms, and pepperoni are added to the pizza before baking for five to ten minutes in an oven. Inarguably, pizza making is an elaborate procedure, but it is optional to add the ingredients, which are referred to as toppings.

Costing

Activity based costing is a superior cost estimation and allocation method since it allocates specific costs to a certain product not only in batch numbers but also in units form; in the case of California Pizza Kitchen, every department has an allocated cost. For example the restaurants foods and drinks costs are gauged according to the processes involved when making the final product.

The method offers a chance to the management to establish linkages and areas that are not efficient; it ensures that certain cost can be attributed to certain commodities especially when a company is dealing with more than one product (Horngren, Srikant & George, 2006).

When dealing with more than one product: some fixed costs, though incurred by the entire company as a whole, relate more to some products: when accounted for using activity-costing method actual cost to be attributed to a commodity can be precisely known. This makes costs incurred by a certain product to be approximated more precisely (Lucey & Lucey, 2002). To illustrate how the method works, this paper will consider the case of California Pizza Kitchen.

The name and nature of the organization

California Pizza Kitchen is an international company in the hospitality industry offering, California-style cuisine, represented through creative pizzas, pastas, soups, sandwiches, appetizers, and desserts; the company has to determine the best price for its products which is through the use of activity based costing method of approach (CPK, 2011).

The activity and time period

When making a product or offering a service; all the processes involved is documented and a certain cost is associated with the particular product or service; there are some direct costs that can be attributed to a certain unit product while others need to be divided among the products made in equal positions.

The company operates owned, licensed or franchised 265 locations in 321 states and 10 foreign countries; for an effective business, the company ensures that there is consistency in the costing and pricing adopted. This assists in creating uniformity in prices and quality offered (Carlon, 2009).

The inputs

The following are the inputs that were used dividend in the category of cost they belong:

• Direct materials
• Fresh produce (the material is shaped in the shape of the final product)
• Spices (shaped in to fit the final products)
• Packagings
• Adhesives

The above variables can be attributed to a single phone by estimate the costs are as follows:

• Fresh produce = $8
• Spices: $1
• Packaging: $1
• Adhesives: $1
• Packaging 2

The total directs costs are $13.

Fixed costs

The following are the fixed costs that are incurred when making the phone; they are incurred by the entire department that is producing the type of phones and cannot be attributed to a single commodity (Noreen, Brewer & Garrison, 2011).

They include:

• Factory Security
• Water for the factory
• Administrative expenses
• Transport
• Selling and advertising costs

Assuming that the costs were as follows, and the company made 1000 phones, then the cost per phone will be calculated as:

• Factory Security = $1000
• Water for the factory: $100
• Administrative expenses= $900
• Transport: 100
• Selling and advertising costs:$100

Total fixed costs were $2200

The cost attributed to a single phone will be $2200/1000 = $2.2

Thus the total cost of the phone was $20+$2 = $ 22.

References

Carlon, S. et al. (2009). Accounting: Building business skills. New York: John Wiley & Sons.

CPK. (2011). Investors Relations: Financial Information. California Pizza Kitchen Web.

Lucey, T. , & Lucey, T. (2002). Costing. London: Cengage Learning.

Horngren, T., Srikant M., & George F.(2006). Cost accounting: A managerial emphasis. Boston, MA: Pearson Prentice Hall.

Noreen, E., Brewer, B., & Garrison, H. (2011). Managerial accounting for managers. New York: McGraw Hill.