Question: Based on the cost breakdown provided, calculate the gross margin for one cup of coffee. What this margin tell you about the potential profitability of
Based on the cost breakdown provided, calculate the gross margin for one cup of coffee. What this margin tell you about the potential profitability of the coffee shop? the scalability of this business modelAs the volume of sales increases, how might fixed and variable costs behave Given the total cost and proposed retail priceconsider additional that could influence the pricing strategy of the coffee shopHow would location, competition, and target market affect your pricing? Reflect on potential hidden costs not considered in this breakdown, as rentutilities marketingand How would these affect the business model? Explore how introducing a loyalty program or could impact the coffee shop's profit margins and the importance of inventory management in the coffee shop and its effects on flow and reduction
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