Enhancement of customer benefit package by adding digital content to a physical good and its effect on the value of good. Concept Introduction: A Customer Benefit Package (CBP) is all the benefits which a customer gets by consuming a good or service. The package adds value to the primary goods and service which increases customer’s willingness to consume.

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Note: Please make sure you label your answers. 2a. Complete the following Make or Buy Analysis. Make or Buy Analysis Food Cost Processed chopped lettuce • $23.80/case of 4, 5 lb. bags • Price/lb Whole head lettuce $16.49/50 lb case • Price/lb AP • 75% yield on whole head lettuce • Price/lb EP Labor Cost Processed chopped lettuce ⚫ No labor cost Whole head lettuce • Cooks are paid $10.85/hr with 20% benefits • It takes 2 hours to process 50 lbs. of lettuce • Benefits • Cook labor cost with benefits • Total labor cost for 1 lb. lettuce

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Chapter 1, Problem 7PA

Summary Introduction

Interpretation: Enhancement of customer benefit package by adding digital content to a physical good and its effect on the value of good.

Concept Introduction: A Customer Benefit Package (CBP) is all the benefits which a customer gets by consuming a good or service. The package adds value to the primary goods and service which increases customer’s willingness to consume.

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Note: Please make sure you label your answers. 2a. Complete the following Make or Buy Analysis. Make or Buy Analysis Food Cost Processed chopped lettuce • $23.80/case of 4, 5 lb. bags • Price/lb Whole head lettuce $16.49/50 lb case • Price/lb AP • 75% yield on whole head lettuce • Price/lb EP Labor Cost Processed chopped lettuce ⚫ No labor cost Whole head lettuce • Cooks are paid $10.85/hr with 20% benefits • It takes 2 hours to process 50 lbs. of lettuce • Benefits • Cook labor cost with benefits • Total labor cost for 1 lb. lettuce

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Factor Factor Description Weight Present Location Newbury Hyde Park 1 Average community income 0.35 2 Community growth potential 0.15 3 Availability of public transportation 0.20 4 Labor availability, attitude, and cost 0.30 3 2 3 2 35 20 25 75 33 28 55 55 25 75 65 50 50 55