You want to buy an existing coffee shop and have been given the following information: ...
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• You want to buy an existing coffee shop and have been given the following information: • They have been selling the following per hour: -120 cups of drip coffee at $1.00/drink, and -45 espresso drinks at $3.25/drink. Drip Coffee Cup Lid Coffee Water Straw Cream, Sugar, etc. Labor Total Variable Costs Per Drink $.14 .08 .07 .01 .04 .08 .09 $0.51 Espresso Type Drinks Per Drink Cup Lid Coffee Water Straw Flavorings, Syrup, Milk Labor Total Variable Costs $.14 .08 .18 .01 .04 .25 .27 $0.97 And according to a national trade association, coffee shops, if they can produce $175 per hour in Contribution Margin, are viable. SHOULD YOU CONSIDER PURCHASING THE COFFEE SHOP? Submit your worked out solution and and give a recommendation. • You want to buy an existing coffee shop and have been given the following information: • They have been selling the following per hour: -120 cups of drip coffee at $1.00/drink, and -45 espresso drinks at $3.25/drink. Drip Coffee Cup Lid Coffee Water Straw Cream, Sugar, etc. Labor Total Variable Costs Per Drink $.14 .08 .07 .01 .04 .08 .09 $0.51 Espresso Type Drinks Per Drink Cup Lid Coffee Water Straw Flavorings, Syrup, Milk Labor Total Variable Costs $.14 .08 .18 .01 .04 .25 .27 $0.97 And according to a national trade association, coffee shops, if they can produce $175 per hour in Contribution Margin, are viable. SHOULD YOU CONSIDER PURCHASING THE COFFEE SHOP? Submit your worked out solution and and give a recommendation.
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