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Essay's paper info
Topic: Business
Number of pages / Number of words: 3 / 832
Essay's paper body

To put it in another way, the benefits you could have received by taking an alternative action.

The opportunity cost of employee meal is the loss of sale or revenue of that meal to a customer.

The prima rib is sold to a customer for $25 while for an employee meal its cost is calculated as $15 thus opportunity cost being $25...

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How is this possible?

It is clear that opportunity of an employee meal is the cost or loss in revenue if a worker ate the last prime rib and the hotel lost a sale.

Since a prima rib is sold for $25 the opportunity cost is $25 however if the customer lost is a regular customer who visits the restaurant very often and he decides not to ever return to the restaurant again then revenue lost in such case can be much higher than $25 and might reach around $300 or more...

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General points of the essay

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