Business, 03.04.2021 02:20 imorn4101

Company Name: XXX XXX Coffee Co Contact / owner: E. B.

Coffee Co is a traveling coffee and espresso bar for special events and any occasion. The company currently offers complete coffee package, including barista, for at home events (“At Home Experience”) and in partnership with existing retail locations (“Elevate Your Space”).

At Home Experience

The At Home Experience provides everything for a full specialty coffee bar to complement any home event – birthday, graduation, lingerie parties! The cost of the At Home Experience is based on length of event and number of guests.

Elevate Your Space

The Elevate Your Space experience partners with commercial venues for special events, such as farmers markets, employee appreciation days, etc.

Each experience includes direct labor and direct materials costs. Direct materials include, but are not limited to the following:

Coffee / espresso beans
Seasonings (raw sugar, white sugar, cinnamon, etc.)
Milk (2%, whole, non-dairy)
Syrups
Cups and lids

Fixed costs include the following:

Coffee cart
Insurance
Website / Email
Accountant

Variable costs include the following:

Shared kitchen space
Direct materials (indicated above)

The plan is to offer two sizes for hot and cold beverages:

Hot 8oz and 12oz

Cold 12oz and 16oz

Items for consideration:

Determine product cost. (Chapter 17: Activity Based Costing) Use product cost to determine how each event should be priced.
Determine break-even point to recover initial investment and fixed costs. (Chapter 18)
Determine whether logos should be printed on the cup, separately on a coffee sleeve, manually affixed as a sticker.

Answers: 2

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Company Name: XXX XXX Coffee Co Contact / owner: E. B.

Coffee Co is a traveling coffee...

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