Question
Krasna Coffee is a new high end coffee roaster in Slovakia that sells 1kg bags of beans through independent coffee shops. The bags of roasted
Krasna Coffee is a new high end coffee roaster in Slovakia that sells 1kg bags of beans through independent coffee shops. The bags of roasted beans retail for 12 Euros and Krasna receives 7.16 Euros for per bag, which costs 3.07 Euros per bag to produce and deliver. In their first year of business they sold 20,934 bags, primarily in the capital of Bratislava, and spent 64,061 Euros on local advertising and promotion. Krasna has one employee focused on marketing and sales whose salary and expenses are 38,513 Euros / year. Based on feedback from the channel and the salesperson, Krasna estimates that the average customer purchased one bag of coffee every other month. What is the margin (in Euros) on a bag of coffee beans sold through the independent coffee shops?
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