Question: Overview K - Chix is a local Korean fried chicken cart owned by your college friend, Yoon Hanna. Hanna knows a lot atout fried chicken,
Overview
KChix is a local Korean fried chicken cart owned by your college friend, Yoon Hanna. Hanna knows
a lot atout fried chicken, but she is not business savvy. Hanna recently purchased a mini fridge
after considering a few marketing ideas to boost her sales. The refrigerator is consistently stocked
with various beverages for her customers to take free of charge. Hanna does not want to lock the
fridge, so she allows her customers to take as many beverages as they need. Since purchasing the
mini fridge, Hanna has noticed a considerable increase in KChix sales but is concerned about how
often she also restocks the fridge with drinks.
With this increase, Hanna would like to evaluate the current state of her sales. She has been
monitoring how many drinks customers take each time they buy KChix chicken, recording the
number of drinks alongside the quantity of chicken in their order. Hanna is also interested in
knowing whether her 'free drink' decision has been more profitable for her business. She has
provided data on chicken order quantities before and after the purchase of the mini fridge for
comparison.
Hanna purchases and sells her chicken for $ and $ per piece, respectively, and spends an
average of $ per bottle on drinks.
Instructions
Using the data file linked below, compute the information Hanna needs to evaluate the current
state of her business. Hanna will need to know the following:
Total Sales for both periods BeforeAfter the purchase of the mini fridge
Total Expenses for both periods, and
Total Net Income Profitability for both periods
Do you think the mini fridge strategy is effective? What changes would you like Hanna to
make?
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