Assume Raffi never stopped by and the space in his coffee shop is not available. Should Jimena start offering delivery through GrubDash? [Hint: In its current operation, variable costs per meal = $5.57, and the contribution margin per meal (i.e., revenue per meal minus variable costs per meal) = $10.83] For the next three questions (b-d), ignore the GrubDash option. b) How many meals would Jimena need to serve in Raffi's per month to make the space sharing deal worthwhile? c) Assume Jimena doesn't get back to Raffi in time and he doesn't renew his lease. How many meals would she need to serve in Raffi's to make renting the space worthwhile? d) At what number of meals does it make more sense for Jimena to take over Raffi's place completely as opposed to making the space sharing deal? e) Why might Jimena not want to start delivery through GrubDash if she shares Raffi's space?

Answer rating: 100% (QA)

To answer the questions b through d we need to calculate the monthly revenue needed to cover the fixed costs associated with either sharing Raffis spa... View the full answer