c) Cool Moose will have a higher opportunity cost than single-head machine. Opportunity Cost If the company purchase Single-head If the company purchase Triple-head Units of Scooped ice Cream 980 1,400 Units price $2.50 $2.50 Total sales $ 2,450.00 $3500.00 Cost percent of sale 31% 31% Total costs $ 759.50 $1,085.00 Total opportunity cost $ 1,690.50 $ 2,415.00 d) Cool Moose will have higher labour cost than single-head machine in the 2010. e) The Return on Investment (ROI) of the new triple-head is lower than used single-head in three year. Total Net Income Cost of Investment Return on Investment New Triple-head $3,813.23 $12,000 32% f) The payback period is longer than used single-head. Cash Flow Statement New Triple Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Income 829.02 1,412.99 1,571.22 1,740.88 1,922.81 2,067.32 2,075.56 Cost of Equipment 12,000 Depreciation 1,285.71 1,714.29 1,714.29 1,714.29 1,714.29 1,714.29
Recommendation: Alternative 1: The best solution for Garland Chocolates is to invest in the new equipment. Their old equipment is 20 years old which is when the machinery can be replaced. It has been able to serve them for so long but the maintenance of the old equipment will get very pricey very fast. Justification for recommendation Once you replace the equipment you can get that money back in revenue. If the equipment is replaced then output can increase because of the increased efficiency.
Market penetration pricing is about setting a lower price on our product with aim to attract customers to buy our product because of the cheaper price compare with other competitor. In our ice cream industry, we have many competitors such as Gelato and Llaollao, so we can use this strategy to stand out among other competitor and draw attention from the customers. After we had successfully penetrated into the market, we will slowly raise back our price to our normal pricing. (A. Pahwa, 28 January
Starbucks was established close to 20 years after Dunkin Donuts; however, they have grown at a significantly quicker rate than Dunkin Donuts, forcing Dunkin Donuts to develop new marketing strategies in order to differentiate themselves from Starbucks. Having already stated Dunkin Donuts’ slogan: “America Runs On Dunkin”, the company used this slogan as their first strategy to set
2.2.7 Corn syrup. Corn syrup (as differentiated from high-fructose corn syrup which is a different product) is one of several natural sweeteners derived from corn starch. Although corn syrup and high-fructose corn syrup are made from corn starch, regular corn syrup is 100 percent glucose. Corn syrup is produced in wet corn mills. The starch is first separated from the corn through a number of processing steps after which the purified corn starch is converted into ordinary corn syrup through application of acid hydrolysis.
Chocolate’s Health Benefits On average, Americans eat 2.8 billion pounds of chocolate each year, that is roughly 11 pounds per person. Imagine how many more people would consume this savory sweet if it was officially healthy. Some do consider properties and ingredients in the chocolate healthy. Others only see the sugar and additives some chocolate contains. Doctors and researchers are able to see both sides of the argument and have done research in each areas.
He immediately increased the prices to a more reasonable amount and ensured that the Green Bay Cold Stone Creamery would be a more profitable company. Sales also are increased because Hassan uses the cash register system to track employee sales. He tracks by having a computer program track employee transactions using their individual check-out numbers. The computer system tracks the sizes sold, the type of ice cream sold (if it is a signature creation or an ice cream with one mix-in) and how many waffles each employee sold. He also institutes a waffle competition where whoever sells the highest percentage of waffles based on their total transactions receives a raise.
According to The Washington Post just in one year from 2013-2014, the numbers of school students using e-cigarettes is tripled and it’s gone up 800 percent since 2011.Contrary to that This is because it is often portrayed as harmless and it is being sold in such kid-friendly options as coca-cola, candy, strawberry and many other flavors. This has raised fears in society as it is been decade, we tried to combating and decreasing the numbers of smokers (Dennis). Also, a research found that teenagers who used this device are 3 times more likely to smoke regular cigarettes compared to those who had never use this device as a lot of parents are fine with their children using this device and they are not aware of the danger of it (Spencer). Moreover, there is more report that children drinking the e-cigarette juice and become horribly ill. For example a case in New York where a toddler died after ingesting liquid nicotine intended for use in an e-cigarette as many parents unaware of the safety risks to children from unsafe storage of e-liquid. From this, we can conclude that this device should be ban due to the appeal to
Soft drink sales increase at an annual rate of 2% and diet soda’s increase at a rate of 11% annually. Aspartame is used by many soft drink companies, including Borden Inc., General Foods, H. J. Heinz, Quaker Oats and Coca-Cola. Aspartame has sent profits through the roof. Since these companies can market their products as “low-calorie”, the increase of sales has gone up 20% annually since 1985. That’s an increase of over 660% to this day.