Dana Morales and Brandon Nguyen are good friends and they decided to open a gourmet dessert place in the town where they grew up in. Dana’s family owns a building in downtown and agreed to let them use the place free of charge for a year. Dana and Brandon have no idea what type of dessert to offer and decided to focus on chocolate products. Dana and Brandon knew that they have to determine how many desserts to prepare every night so they can stock up. Based on their initial research, they estimated that they could sell about 60 servings of chocolate-based dessert every night. While they are still determining the right number and type of desserts to offer, Dana and Brandon decided to offer a hot and a cold chocolate dessert to start. Each hot chocolate dessert requires 15 minutes to prepare. The cold chocolate dessert takes twice as long. Kitchen staff labor is available daily for 20 hours. Because winter is coming, Dana and Brandon estimates that they will sell at least three hot chocolate desserts for every two cold chocolate desserts. However, they also estimated that at least 10% of their clientele would order cold chocolate desserts. The profit from each hot chocolate dessert is about $12. They estimate to gain $16 for every order of cold chocolate dessert. Instructions: 4) Discuss the effect this would have on the preparation plan, if instead of the estimated 10% of clientele would order cold chocolate dessert, it is now 20%. 5) Dana and Brandon are considering investing in some marketing to increase the number of clients. They allocated $30 a day to spend on promotions. They feel that if they do this, it will increase their orders from 60-70. Should they invest? Explain your answer. 6) Dana and Brandon are concerned with the new team. Some of them are college kids who may not need the work. They estimate that on some days, they can reduce the number of hours by 5 hours. Discuss how this will have an impact on their profits.
Dana Morales and Brandon Nguyen are good friends and they decided to open a gourmet dessert place in the town where they grew up in. Dana’s family owns a building in downtown and agreed to let them use the place free of charge for a year.
Dana and Brandon have no idea what type of dessert to offer and decided to focus on chocolate products. Dana and Brandon knew that they have to determine how many desserts to prepare every night so they can stock up. Based on their initial research, they estimated that they could sell about 60 servings of chocolate-based dessert every night. While they are still determining the right number and type of desserts to offer, Dana and Brandon decided to offer a hot and a cold chocolate dessert to start. Each hot chocolate dessert requires 15 minutes to prepare. The cold chocolate dessert takes twice as long.
Kitchen staff labor is available daily for 20 hours. Because winter is coming, Dana and Brandon estimates that they will sell at least three hot chocolate desserts for every two cold chocolate desserts. However, they also estimated that at least 10% of their clientele would order cold chocolate desserts. The profit from each hot chocolate dessert is about $12. They estimate to gain $16 for every order of cold chocolate dessert.
Instructions:
4) Discuss the effect this would have on the preparation plan, if instead of the estimated 10% of clientele would order cold chocolate dessert, it is now 20%.
5) Dana and Brandon are considering investing in some marketing to increase the number of clients. They allocated $30 a day to spend on promotions. They feel that if they do this, it will increase their orders from 60-70. Should they invest? Explain your answer.
6) Dana and Brandon are concerned with the new team. Some of them are college kids who may not need the work. They estimate that on some days, they can reduce the number of hours by 5 hours. Discuss how this will have an impact on their profits.
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