Case study | Numerical analysis homework help


InstructionsRead the following case study:  Motivated by his ambitions and previous work in coffee  shops, Angelo is    moving to Barrow, Alaska, to open a shop he has named Alaska  Coffee. Angelo    intends to sell coffee, espresso, and a couple of food items. He  has signed a    lease for a shop on one of the main streets and is moving in. His  parents    fronted him the cost or actual items of furniture and utensils, and he     acquired  some donated items, so he will not have to count these items in his     cash  accounting. Angelo is nearly ready to start selling  coffee!  Angelo notes that he has the following fixed costs that he  does have to    count:     $1200/month for employees, totaled up, and $1500/month lease, insurance, state, and borough fees.  Angelo figured he would allocate these  fixed costs to his  products in  the same proportion that they provided revenue as shown in this  table: ITEM PRICE                               SOLD                             /                               UNIT VARIABLE                               COST                             /                               UNIT %                               REVENUE Coffee $2.00 /                               cup $                                                            0.25 /                               cup 75% Espresso 3.00 /       small                         cup 0.50 /       small                         cup 15% Scones 4.00 /                               ea. 2.00 /                               ea. 5% Bear                               Claws 1.50 /                               ea. 1.00 /                               ea. 5%

As you can see, local demand and the cost of acquiring  supplies and    ingredients from a store in the Arctic drives Angelo’s accounting.  The coffee    is the thing for him! However, the other items are selling as  well.  Angelo asks a visiting family member to prepare a report  for him that    answers the questions below.       With the way Angelo has the fixed cost proportioned out by 75%, 15%, 5%,             and 5% for each of the four items for sale, what is the break-even   point     of       sales of each item for him in a month? What would the total sales figure for the shop be at the break-even point?                   What, if anything, should Angelo do to improve his business?  Prepare the report as instructed in a response of at least three pages. Be    sure to research at least two sources to support your ideas and  integrate the    sources in APA-formatted citations and matching reference lists.   Additionally,   use Times New Roman 12pt. double-spaced  font. 

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