Question: Based on the cost breakdown provided, calculate the gross margin for one cup of coffee. What does this margin tell you about the potential profitability

Based on the cost breakdown provided, calculate the gross margin for one cup of coffee. What does this margin tell you about the potential profitability of the coffee shop? Discuss the scalability of this business model. As the volume of sales increases, how might fixed and variable costs behave? Given the total cost and proposed retail price, consider additional factors that could influence the pricing strategy of the coffee shop. How would location, competition, and target market affect your pricing?

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