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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 cost per beverage, are given below: Beverages sold Price per beverage 400 $2.00 Material per beverage ($) $0.50 Regular Coffee Beverages sold Price per beverage Material per beverage ($) Cappuccino 100 $3.00 $0.75 Regular Coffee 400 $2.00 $0.50 Vienna coffee 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 200 $4.00 $1.25 Vienna Cappuccino coffee 100 200 $3.00 $4.00 $0.75 $1.25 Eiskaffee 75 $6.00 $1.00 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 0.63%. (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 cost per beverage, are given below: Beverages sold Price per beverage 400 $2.00 Material per beverage ($) $0.50 Regular Coffee Beverages sold Price per beverage Material per beverage ($) Cappuccino 100 $3.00 $0.75 Regular Coffee 400 $2.00 $0.50 Vienna coffee 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 200 $4.00 $1.25 Vienna Cappuccino coffee 100 200 $3.00 $4.00 $0.75 $1.25 Eiskaffee 75 $6.00 $1.00 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 0.63%. (Enter your response as a percent rounded to two decimal places and include a minus sign if productivity decreases.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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 Coffee Beverages sold Price per beverage 400 $2.00 Material per beverage ($) $0.50 Beverages sold Price per beverage Material per beverage ($) 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 Regular Coffee Cappuccino 100 $3.00 $0.75 400 $2.00 $0.50 Vienna coffee 200 $4.00 $1.25 Cappuccino 100 $3.00 $0.75 Vienna coffee 200 $4.00 $1.25 Eiskaffee 75 $6.00 $1.00 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 0.63%. (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 Coffee Beverages sold Price per beverage 400 $2.00 Material per beverage ($) $0.50 Beverages sold Price per beverage Material per beverage ($) 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 Regular Coffee Cappuccino 100 $3.00 $0.75 400 $2.00 $0.50 Vienna coffee 200 $4.00 $1.25 Cappuccino 100 $3.00 $0.75 Vienna coffee 200 $4.00 $1.25 Eiskaffee 75 $6.00 $1.00 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 0.63%. (Enter your response as a percent rounded to two decimal places and include a minus sign if productivity decreases.)
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