Yummy Yogurt sells yogurt cones in a variety of natural flavors. Data for a recent month follow:

A. Categorize each cost as fixed or variable.
B. Create a cost function.
C. What is the opportunity cost when a new flavor of yogurt replaces an old one? (Assume that all yogurts are priced the same, but the variable costs for each flavor are different because different ingredients are used.)
D. Yummy Yogurt’s managers are concerned that they sometimes lose business because of long customer lines during peak times. Therefore, they are considering whether to remove one table for customers and add an extra cash register in that space, so that throughput time (customer wait and service time) decreases. Is the cost of store rent relevant to the decision? Why or whynot?

  • CreatedJanuary 26, 2015
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