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Business
Operations Management
The Morning Brew Coffee Shop sells Regular, Cappuccino, and Vienna blends of coffee. The shop's current daily labor cost is $320, the equipment cost is $125, and the overhead cost is $225. Daily demands, along with price and material costs per beverage, are given below: Regular Coffee Vienna Cappuccino coffee Beverages sold 400 100 200 Price per beverage $2.00 $3.00 $4.00 Material per beverage ($) $0.50 $0.75 $1.25 Harald Luckerbauer, the manager at Morning Brew 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. Her 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. Modified daily demands, as well as price and material costs per beverage for the new product line, are given below: D i Regular Coffee Cappuccino Vienna coffee Eiskaffee Beverages sold 400 100 200 50 Price per beverage $2.00 $3.00 $4.00 $5.50 Material per beverage ($) $0.50 $0.75 $1.25 $1.50 a. Calculate the change in labor and multifactor productivity if Eiskaffee is added to the menu. (Note: Be sure to round each individual labor and multifactor productivity to no fewer than two decimal places before calculating the percentage changes.) The change in labor productivity if Eiskaffee is added to the menu is ☐ %. (Enter your response as a percent rounded to two decimal places and include a minus sign if productivity decreases.)

The Morning Brew Coffee Shop sells Regular, Cappuccino, and Vienna blends of coffee. The shop's current daily labor cost is $320, the equipment cost is $125, and the overhead cost is $225. Daily demands, along with price and material costs per beverage, are given below: Regular Coffee Vienna Cappuccino coffee Beverages sold 400 100 200 Price per beverage $2.00 $3.00 $4.00 Material per beverage ($) $0.50 $0.75 $1.25 Harald Luckerbauer, the manager at Morning Brew 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. Her 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. Modified daily demands, as well as price and material costs per beverage for the new product line, are given below: D i Regular Coffee Cappuccino Vienna coffee Eiskaffee Beverages sold 400 100 200 50 Price per beverage $2.00 $3.00 $4.00 $5.50 Material per beverage ($) $0.50 $0.75 $1.25 $1.50 a. Calculate the change in labor and multifactor productivity if Eiskaffee is added to the menu. (Note: Be sure to round each individual labor and multifactor productivity to no fewer than two decimal places before calculating the percentage changes.) The change in labor productivity if Eiskaffee is added to the menu is ☐ %. (Enter your response as a percent rounded to two decimal places and include a minus sign if productivity decreases.)

Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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The Morning Brew Coffee Shop sells Regular, Cappuccino, and Vienna blends of coffee. The shop's current daily labor cost is $320, the equipment cost is $125, and the overhead cost is $225. Daily demands, along with price and material costs per beverage, are given below: Regular Vienna Cappuccino Coffee coffee Beverages sold 400 100 200 Price per beverage $2.00 Material per beverage ($) $0.50 $3.00 $0.75 $4.00 $1.25 Harald Luckerbauer, the manager at Morning Brew 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. Her 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. Modified daily demands, as well as price and material costs per beverage for the new product line, are given below: i Regular Coffee Cappuccino Vienna coffee Eiskaffee Beverages sold 400 100 200 50 Price per beverage $2.00 $3.00 $4.00 $5.50 Material per beverage ($) $0.50 $0.75 $1.25 $1.50 a. Calculate the change in labor and multifactor productivity if Eiskaffee is added to the menu. (Note: Be sure to round each individual labor and multifactor productivity to no fewer than two decimal places before calculating the percentage changes.) The change in labor productivity if Eiskaffee is added to the menu is ☐ %. (Enter your response as a percent rounded to two decimal places and include a minus sign if productivity decreases.)
Transcribed Image Text:The Morning Brew Coffee Shop sells Regular, Cappuccino, and Vienna blends of coffee. The shop's current daily labor cost is $320, the equipment cost is $125, and the overhead cost is $225. Daily demands, along with price and material costs per beverage, are given below: Regular Vienna Cappuccino Coffee coffee Beverages sold 400 100 200 Price per beverage $2.00 Material per beverage ($) $0.50 $3.00 $0.75 $4.00 $1.25 Harald Luckerbauer, the manager at Morning Brew 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. Her 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. Modified daily demands, as well as price and material costs per beverage for the new product line, are given below: i Regular Coffee Cappuccino Vienna coffee Eiskaffee Beverages sold 400 100 200 50 Price per beverage $2.00 $3.00 $4.00 $5.50 Material per beverage ($) $0.50 $0.75 $1.25 $1.50 a. Calculate the change in labor and multifactor productivity if Eiskaffee is added to the menu. (Note: Be sure to round each individual labor and multifactor productivity to no fewer than two decimal places before calculating the percentage changes.) The change in labor productivity if Eiskaffee is added to the menu is ☐ %. (Enter your response as a percent rounded to two decimal places and include a minus sign if productivity decreases.)
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