You work in a small coffee shop. The shop sells primarily three items: brewed coffee drinks, whole bean/ground coffee, and pastries. The shop owner has asked you to gather data on sales of the product mix. There has been discussion of whether the pastries are profitable and should they be discontinued. To complicate the matter your friend would like to sell pastries to the coffee shop and you would like the friendship to blossom into a closer relationship. After collecting the information, you learn that while the pastries are indeed not profitable, but they contribute to covering the overhead costs. And the customer draw potential of the pastries has not been tested. What do you recommend to the owner?

You work in a small coffee shop. The shop sells primarily three items: brewed coffee drinks, whole bean/ground coffee, and pastries. The shop owner has asked you to gather data on sales of the product mix. There has been discussion of whether the pastries are profitable and should they be discontinued. To complicate the matter your friend would like to sell pastries to the coffee shop and you would like the friendship to blossom into a closer relationship. After collecting the information, you learn that while the pastries are indeed not profitable, but they contribute to covering the overhead costs. And the customer draw potential of the pastries has not been tested. What do you recommend to the owner?

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter6: Managing Start-Ups And New Ventures

Section: Chapter Questions

Problem 3CFCA

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