Neighborhood Cafe Spring 2024 Pre-Work assignment

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School

Washington University in St Louis *

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102M

Subject

Management

Date

Feb 20, 2024

Type

pdf

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2

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Case Analysis Neighborhood Café Step 1: The Facts Summarize the key information from the case and the current situation. WHO is the decision maker? Aisha WHAT is the business decision we are trying to make? What are some of the underlying issues? They need to decide between Yummy Northwest and Baking Right so that the cafes can sell bread to customers. WHY has this a decision that needs to be made? How do we know this? What led to the current situation? The bakery that she used to use is going to shut down. WHEN does the business decision need to be made? Is it urgent? Why? Soon because she needs to find a new supplier for bread.
Help Aisha analyze the financial performance of these two suppliers by completing the following: 1. Calculate financial ratios for Flour Power and Oven Fresh Delights using the spreadsheet provided. (Show current ratio, quick ratio, debt to equity, and net profit margin ratios as decimals rounded to 2 decimal places. Show return on equity as a percentage). 2. Calculate the number of units of bread that Neighborhood Café would have to sell in order to break-even if they selected Flour Power versus Oven Fresh Delights. What is Aisha’s break-even point using the current bread supplier, Love Loaves? What would her break-even point be if she contracts with Flour Power versus Oven Fresh Delights? Flour Power 4.25 * 9696 = 40723 units Oven Fresh 4.25 * 1023 = 4247 units Current 4.25 * ??? = ???
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