Harald Luckerbauer, the manager at Morning Brew Coffee Shop, thinks about this s

Question

Harald Luckerbauer, the manager at Morning Brew Coffee Shop, thinks about this situation further. He decides

that he would like to see the multi-factor productivity increase by at least 20% for him to go to the trouble of adding

the Eiskaffee to the menu. To accomplish this, the spreadsheet should be modified as follows: (Mark all that apply.)

A.multiply cell C23 by 1.2 and enter this in the Goal Seek To Value: - then perform the Goal Seek

B.multiply cell C40 by 1.2

C.multiply all instances of cell C23 in cell E40 by 1.2

D.multiply cell F4 by 1.2

PLEASE INDICATE ANSWER!

1 Problem 1.9 [page 26] - Morning Brew Cooffee Shop-Text data 9. The Morning Brew Coffee Shop sells Regular, Cappuccino, 3 4 5 Daily Demand Beverages sold, Q Price per beverage, P 350 $2.00 75 55.00 and Vienna blends of coffee. The shop's current daily labor cost is $320, the equipment cost is $125, and the overhead cost is $225. Daily demands, along with selling price and ma- terial costs per beverage, are given below. 53.00 54.00 75 Regular Coffee Cappuecino Coffee 30000 $600.00 175.00 75.00 187.50 $112.50 $700.00 $375.00 8 Output (Revenue), Q*P 9 Material Cost, Q"M 10 11 Daily Labor Cost 12 Equipment Cost 13 Overhead Cost $3.00 $4.00 Matura G) $0.75 Harald Luckerbauer, the manager at Morning Brew Cof- fee Shop, would like to understand how adding Eiskaffee (a German coffee beverage of chilled coffee, milk, sweetener, and vanilla ice cream) will alter the shop's productiviry. His market research shows that Biskaffee will bring in new cus- tomers and not cannibalize current demand. Assuming that the new equipment is purchased before Eiskaffee is added to the menu, Harald has developed new average daily demand and cost projections. The new equipment cost is $200, and the overhead cost is $350. Modified daily demands, as well as selling price and material costs per beverage for the new product line, are given below 15 With Eiskaffee 16 New Equipment Cost 17 New Overhead Cost 19 Existing Daily Productivity 20 Output 21 Labor Productivity 22 Input 23 MultiFactor Productivity $1,600.00 5.0000 $1,107.50 Coffee GCappuccino Coffee Eiskaffee Beverages sold Price per beverage $2.00 $3.00 S4.00 $5.00 25 | 26 Output 27 Labor Productivity 28 Input 29 MultiFactor Productivity $1,975.00 6.1719 $1,420.00 $0.50$075 $1.25 $1.50 Increase a. Calculate the change in labor and mulifactor productivity if Eiskaffee is added to the menu -3.73% b. Ifeverything else remains unchanged, how many units of Eiskafee would have to be sold to ensure that the multi- factor productivisy increases from its current level? To get Eiskaffee 1.444695 Set cell: 1.444695 34 By ghanging cell: $FS4 36 37 38 Quantitiy of Eiskaffee to maintain productivity (by formula) 101.992

Explanation / Answer

If the multi-factor productivity needs to increase by 20%, the new multi-factor productivity = (1.44*1.2) = 1.728

So in the Goal Seek function, the To value will be 1.728, 'Set cell' value = $C$29, 'By changing cell' value = $F$4

So, the correct answer is A.

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