Prince Shop. owns and operates a chain of popular coffee stands that serve over 30 different coffee-based beverages. The constraint at the coffee stands is the amount of time required to fill an order, which can be considerable for the more complex beverages. Sales are often lost because customers leave after seeing a long waiting line to place an order. Careful analysis of the company's existing products has revealed that the opportunity cost of order- filling time is P34.00 per minute. The company is considering introducing a cappuccino, to be made with almond extract and double-fine sugar. The variable cost of the' standard size amaretto cappuccino would he P4 60 and new product, amaretto

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter1: An Overview Of Strategic Marketing
Section1.2: Dollar Shave Club: The Company For Men
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Prince Shop. owns and operates a chain of popular coffee stands that serve
over 30 different coffee-based beverages. The constraint at the coffee stands
is the amount of time required to fill an order, which can be considerable for
the more complex beverages. Sales are often lost because customers leave
after seeing a long waiting line to place an order. Careful analysis of the
company's existing products has revealed that the opportunity cost of order-
filling time is P34.00 per minute.
The company is considering introducing a
cappuccino, to be made with almond extract and double-fine sugar. The
variable cost of the' standard size amaretto cappuccino would he P4 60 and
new product, amaretto
Transcribed Image Text:Prince Shop. owns and operates a chain of popular coffee stands that serve over 30 different coffee-based beverages. The constraint at the coffee stands is the amount of time required to fill an order, which can be considerable for the more complex beverages. Sales are often lost because customers leave after seeing a long waiting line to place an order. Careful analysis of the company's existing products has revealed that the opportunity cost of order- filling time is P34.00 per minute. The company is considering introducing a cappuccino, to be made with almond extract and double-fine sugar. The variable cost of the' standard size amaretto cappuccino would he P4 60 and new product, amaretto
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