Question: Help please? Question 2. The Labone Coffee Shop sells Regular, Cappuccino, and Vienna blends of coffee. The shop's current daily labour cost is $320, the

Help please?

Help please? Question 2. The Labone Coffee Shop sells Regular, Cappuccino, and

Question 2. The Labone Coffee Shop sells Regular, Cappuccino, and Vienna blends of coffee. The shop's current daily labour cost is $320, the equipment cost is $125, and the overhead cost is $225. Daily demands, along with selling price and material costs per beverage, are given below. Regular Coffee Cappuccino Vienna Coffee Beverages sold 350 100 150 Price per beverage $2.00 $3.00 $4.00 Material ($) $0.50 $0.75 $1.25 Hawa Baffoe, the manageress at the Labone Coffee Shop, would like to understand how adding Eiskaffee (a German coffee beverage of chilled coffee, milk, sweetener, and vanilla ice cream) will alter the shop's productivity. His market research shows that Eiskaffee will bring in new customers and not cannibalize current demand. Assuming that the new equipment is purchased before Eiskaffee is added to the menu, Harald has developed new average daily demand and cost projections. The new equipment cost is $200, and the overhead cost is $350. Modied daily demands, as well as selling price and material costs per beverage for the new product line, are given below. Regular Coffee Cappuccino Vienna Coffee Eiskaffee Beverages sold 350 100 150 75 Price per beverage $2.00 $3.00 $4.00 $5 .00 Material ($) $0.50 $0.75 $1.25 $1.50 a. Calculate the change in labour and multifactor productivity if Eiskaffee is added to the menu. b. If everything else remains unchanged, how many units of Eiskaffee would have to be sold to ensure that the multifactor productivity increases from its current level

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