Coffee Shop Operations Cost Management

Data:

• Monthly Fixed Costs: $2,000,000
• Variable Costs per Beverage: $2
• Beverages Sold: 1,000,000
• Marketing Costs per Beverage: $0.50

Requirements:

1. Calculate the total monthly costs, including marketing costs.
2. Determine the cost per beverage.
3. Analyze the impact of selling 200,000 additional beverages on total and per-beverage costs.
4. Discuss the importance of managing marketing costs.
5. Recommend strategies for optimizing coffee shop operations.
6. Evaluate the potential benefits of offering seasonal promotions.
7. Assess the impact of cost control measures on customer loyalty and brand growth.