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Your client, QuickBite, is rebalancing its menu promotions. You have a dual-ring pie showing the menu mix shift from FY2023 to FY2024. Total revenue rose from $480M → $540M. Category gross margins (approx.): Burgers 18%, Chicken 24%, Sides 25%, Beverages 75%, Desserts 55%. The inner ring is FY2023 mix; the outer ring is FY2024 mix.
Analyze the exhibit. Which category contributed the largest increase in revenue dollars from FY2023 to FY2024, and—based on the margin profile above—which two categories should be prioritized for promotions to maximize profit dollars next quarter?
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Your answer:
📋 Solution:
1) Winner by inspection:
The only category with a large positive mix shift is Chicken (+6 pts). Others are flat or down. So only Chicken needs full math.
2) Calculate Chicken’s dollar change:
- 2023: 22% × $480M ≈ $105.6M
- 2024: 28% × $540M ≈ $151.2M
- Increase ≈ $45–46M
3) Quick cross-checks (rough, not full math):
- Sides (flat 17%): lift ≈ 17% × $60M ≈ $10M.
- Burgers (−5 pts): scale gain ≈ 38% × $60M ≈ $22.8M minus mix loss ≈ 5% × $540M ≈ $27M → ≈ −$4M.
(So Chicken’s ≈ +$46M tower over Sides’ ≈ +$10M; Burgers decline.)
