A$.$ Acquire Input Data

An interview with the proprietors of Agila Coffee & Supply Co$.$ was conducted to collect essential primary data. The

researchers were able to gather information on their menu, pricing, marketing strategy, and sales. Furthermore, the researchers were

able to gain extra important data information owing to the owners' generosity in sharing essential business records about the study.

B$.$ Explain the Content of your Database

The figure below shows the researchers the amount of inventory Agila Coffee & Supply Co$.$ has sold for February $2024.$

These products were sold through Shopee and the researchers have collected the data and translated them into a table format of which

the researchers plan to apply these data to a linear programming model.

Figure no$.2$ Amount of Inventory Sold for February $2024$

The figure below shows the researchers the different price points, classification of drinks, and unit sales that Agila Coffee &

Supply Co's physical store gained in February. The data presented was gathered from the company's accounting records and with

which the researchers plan to use the records as variables for a linear programming model.

Figure no$.2\mathrm{.}1$ Aguila's Product Pricing Figure no$.2\mathrm{.}3$ Financial Data of Agila for February

III. Alternative Courses of Action $($ACA$)$

Alternative Course of Action # $1$

A$.$ Develop a Model and Test the Solution

The model that the group has used is the break even analysis

Figure no$.3$ Break even Analysis

B$.$ Analyze the Results

The results show that Agila Coffee and Supply Co$.$ needs to sell $480$ units in order to breakeven for the

costs of the coffee. This calculation includes operating costs and machinery liabilities.

C$.$ Pros and Cons

Pros:

Agila Coffee and Supply Co$.$ has the means to break even and even profit from their sales

With the breakeven point being the basis for profit, Aguila can easily gauge the number of units that has to

be sold to reach break even point, all sales gained after break even point will be considered as net profit.

Clear Sales Target: Agila Coffee and Supply Co$.$ may easily calculate the number of units they must sell to

reach the break$-$even point, which serves as a standard for profitability. This gives them a specific sales goal to work towards, which may aid in the planning of their sales methods and the tracking of their

progress toward profitability.

Potential for Net Profit: After Agila Coffee & Supply Co$.$ crosses the break$-$even mark, all future sales will

be counted as net profit. This implies that if they keep selling more units, their earnings may rise, enabling

them to expand their firm and make further investments.

Cons:

Profits could be increased, but since their physical store is their personal household, the company should

have a brick and mortar location or prioritize delivery in order to separate their work from their personal

lives

Agila Coffee and Supply Co$.$ is not advertising their products properly, therefore poor sales.

Market Competition: Other coffee and supply businesses may compete with Agila Coffee and Supply Co$.$

To draw in and keep clients, they must make sure that they set themselves apart from other businesses in

terms of quality, cost, and customer service.

Economic factors: Agila Coffee and Supply Co$.$ might be influenced by outside economic variables such

shifts in consumer buying habits, inflation, and economic downturns. They need to be ready to modify their

business strategy in order to account for the potential impact these factors may have on their sales and

profitability.

Alternative Course of Action # $2$

D$.$ Develop a Model and Test the Solution

E$.$ Analyze the Results

The one in black are basis for the computation of the one in red text. the one in red text below, is an example of how it should be answered so please prepare the following: Alternative Course of Action #$1$ &$2[$A$.$ develop a model and test solution, B$.$ Analyze the Results, C$.$ Pros and Cons$]$ and the Optimal Solution