Neighborhood Cafe Spring 2024 Pre-Work assignment
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Management
Date
Feb 20, 2024
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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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