Questions:

1. Should the Shop consider dropping any of its product lines? How can a change in coffee vendor impact future sales mix and profits?

2. What recommendations would you make to improve operations in the areas of staffing, marketing, inventory management, facilities management, internal controls, and accounting?

Transcribed Image Text:

Coffee, costs, and competition: a case exercise for managerial accounting Linda A. Hall, Jayanti Bandyopadhyay and Susan McNamara Dr Linda A. Hal is a Professor, Overview based at SUNY Fredonia, The Snack Shop, a student-run convenience store was located in the academic building housing the Business Department of a small US College campus. The store ran under the umbrella of a student organization - The Business Student Club (BSC). The BSC was chartered and recognized on campus by the Student Association for more than 40 years, and received Fredonia, New York, USA. Dr Jayanti Bandyopadhyay is a Professor, based at Salem State University, Salem, limited funding for its activities. The Snack Shop was a major continuous source of income for the BSC for over 30 years. Massachusetts, USA. Dr Susan McNamara is an Assistant Professor, based at The Snack Shop was managed by a set of five student interns per semester, under the advisement of faculty members from the Business Department. The internship titles were CEO, Inventory/Facilities, Finance, Human Resources, and Marketing. The store was staffed by student volunteers, most of whom were members of the BSC. In order to maintain its status as an intemship site, the Shop had to be run as an independent business. The Shop was required to make a contribution each semester to the Business Department budget to simulate rent and overhead costs. Each semester the Snack Shop budget included a $750 allocation to the BSC SUNY Fredonia, Fredonia, New York, USA. to help offset the cost of its annual educational trip to New York City, with any remaining profit going toward improvements in the facilities. Any shortfall would come from accumulated net assets. In addition to dealing with the general challenges of running a business, the interns were expected to continuously improve and evolve the Shop so that it would be sustainable as a leaming lab for the Business Department. Coffee, costs, and competition: a case exercise for managerial accounting Linda A. Hall, Jayanti Bandyopadhyay and Susan McNamara Dr Linda A. Hal is a Professor, Overview based at SUNY Fredonia, The Snack Shop, a student-run convenience store was located in the academic building housing the Business Department of a small US College campus. The store ran under the umbrella of a student organization - The Business Student Club (BSC). The BSC was chartered and recognized on campus by the Student Association for more than 40 years, and received Fredonia, New York, USA. Dr Jayanti Bandyopadhyay is a Professor, based at Salem State University, Salem, limited funding for its activities. The Snack Shop was a major continuous source of income for the BSC for over 30 years. Massachusetts, USA. Dr Susan McNamara is an Assistant Professor, based at The Snack Shop was managed by a set of five student interns per semester, under the advisement of faculty members from the Business Department. The internship titles were CEO, Inventory/Facilities, Finance, Human Resources, and Marketing. The store was staffed by student volunteers, most of whom were members of the BSC. In order to maintain its status as an intemship site, the Shop had to be run as an independent business. The Shop was required to make a contribution each semester to the Business Department budget to simulate rent and overhead costs. Each semester the Snack Shop budget included a $750 allocation to the BSC SUNY Fredonia, Fredonia, New York, USA. to help offset the cost of its annual educational trip to New York City, with any remaining profit going toward improvements in the facilities. Any shortfall would come from accumulated net assets. In addition to dealing with the general challenges of running a business, the interns were expected to continuously improve and evolve the Shop so that it would be sustainable as a leaming lab for the Business Department.

Answer rating: 100% (QA)

1 With reference to table 1 presented in the case study the bottles and canned beverages and snacks and candy constitute the majority of the overall or total sales of the studentrun campus coffee shop ... View the full answer