Regular Coffee Cappuccino Coffee Eiskaffee Vienna Beverages sold 350 100 150 75 Price per beverage $2.00 $3.00 $4.00 $5.00 Material ($) $0.50 $0.75 $1.25 $1.50 Regular Coffee Cappuccino Coffee Eiskaffee Vienna Beverages sold 350 100 150 75 Price per beverage $2.00 $3.00 $4.00 $5.00 Material ($) $0.50 $0.75 $1.25 $1.50
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
The Morning Brew Coffee Shop sells Regular, Cappuccino,
and Vienna blends of coffee. The shop’s current daily labor
cost is $320, the equipment cost is $125, and the overhead
cost is $225. Daily demands, along with selling price and ma-
terial costs per beverage, are given below.Harald Luckerbauer, the manager at Morning Brew Cof-
fee Shop, would like to understand how adding Eiskaffee (a
German coffee beverage of chilled coffee, milk, sweetener,
and vanilla ice cream) will alter the shop’s productivity. His
market research shows that Eiskaffee will bring in new cus-
tomers and not cannibalize current demand. Assuming that
the new equipment is purchased before Eiskaffee is added to
the menu, Harald has developed new average daily demand
and cost projections. The new equipment cost is $200, and
the overhead cost is $350. Modified daily demands, as well
as selling price and material costs per beverage for the new
product line, are given below.
a. Calculate the change in labor and multifactor productivity
if Eiskaffee is added to the menu.
b. If everything else remains unchanged, how many units of
Eiskaffee would have to be sold to ensure that the multi-
factor productivity increases from its current level?
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