Question

Please calculate missing information in Table 3.

Case Created on April 2018 The University of Arizona Eller College of Management Undergraduate Programs Lyndsey Edmonds Financial & Market Trend Information Table 1: Product Profit By Category 2019 Retail Price Per Margi Profit Per Unit Revenue Profit Cost Per Unit Units Sold Unit Coffee Beverages % $12 $9 $3 50,000 $ & Food Coffee Beans $10 $ $20 $10 $ 15,000 Table 2: Yearly Revenue By Category 2019 2020 2016 2017 2018 Coffee Beverages $518,303 $600,000 $544,218 $571,429 & Food $ Coffee Beans $259,151 $300,000 $272,109 $285,714 Table 3: Break Even Analysis Additional Total Units Cost 2020 Revenue Units Mobile Application/Coffee Beverages & Food E-Commerce $16,700 $ $15,000 Site/Coffee Beans Table 4: Trends & Patterns Increasing by 5 % per year due to development in downtown area Increasing by 5% per year due to popularity of at home brewing Coffee Beverages & Food Coffee Beans Table 5: Daily Overall Coffee Consumption (National) 2018 2017 Age Range 37% 31% 13-18 50% 48% 18-24 60 % 63% 25-39 53 % 64 % 40-59 68 % 64% 60+

Answer 1

Answer:-

Break even analysis

	Cost	2020 Revenue	Total Units	Additional Units
Mobile applications / Coffee beverages and food	$ 16700	$ 630000	52500	2500
E- commerce sites / Coffee beans	$ 15000	$ 315000	15750	750

2020 -- Both Coffee beverages and food and Coffee beans increase by 5%
Coffee beverages and food
2019 --- Number of units ----- 50000
2010---- Number of units ----- 50000 x 1.05 = 52500 units
Additional units = 52500 - 50000 = 2500 units
Revenue = 52500 x $ 12 = $ 630000
Coffee beans
2019 ---- Number of units ----- 15000
2020 ---- Number of units ----- 15000 x 1.05 = 15750 units
Additional units = 15750 - 15000 = 750
Revenue = 15750 x $ 20 = $ 315000