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Cool Beans is a locally owned coffeeshop that competes with two large coffee chains, PlanetEuro and Frothies. Alicia, the owner, is considering two different marketing promotions and thinks that CLV analysis will help her decide the best course of action. An average specialty coffee drink sells for $3.52 and has a margin of 74%. One promotion is providing loyalty cards to her regular customers that would give them one free specialty coffee drink after 10 regular purchases. Alicia estimates that this will increase the frequency of their purchases by 16%. Currently, her customers average buying 2 specialty drinks per week.
The second promotion is targeted at new customers. She would offer a free specialty drink to incoming college freshmen by providing a coupon with their orientation packages. Because of her location near the college, she expects that 540 students will come to Cool Beans for a free trial. Of those, she anticipates that 18% will become regular customers who will purchase at least one specialty drink each week. The cost of printing and distributing the coupons is $139.
1) What is the dollar margin per specialty drink served?
Do an Internet search and develop a list of at least 7 Internet sites that describe how to apply multiproduct break-even analysis in manufacturing and/or service organizations
The part in question, 3079, is used in two different subassemblies: no. 435, which is used in the Gemini TV stand, and no. 257, which is used in the Saturn microwave stand. One of part 3079 is used in each subassembly, and one of each subassembly ..
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Speedy Oil provides a single-channel automobile oil change and lubrication service. Customers provide an arrival rate of 2.5 cars per hour. The service rate is 5 cars per hour. What is the average number of cars in the system? What is the average tim..
Professor Littrell is teaching a summer seminar in business torts at State University. Several times during the course, he makes copies of relevant sections from business law texts and distributes them to his students. Littrell does not realize that ..
The FAR Part 15 provides the policies and procedures for the negotiation of a government contract. These guidelines protect both the government and the organization that submits a proposal for consideration, whether a competitive or other-than-com..
Explain how management has adapted technology to human ability; and where technology has demanded new abilities, how has management innovated.
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