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Pace Perk, the new coffee bar managed by students at the Pleasantville campus, must decide whether to introduce croissants to the line of breakfast foods

Pace Perk, the new coffee bar managed by students at the Pleasantville campus, must decide whether to introduce croissants to the line of breakfast foods they currently offer. Projecting from current sales figures, Pace Perk managers estimate they will sell 1000 scones and 4500 bagels per year. The croissants would sell for $1.50(cost of goods sold of $.65). Based on their experience at the coffee bar and an informal poll among fellow students, the student mangers of Pace Perk think that they could sell 3200 croissants per year. 30 percent of the croissant sales volume would come from the higher priced scones which sell for $2(cost of goods sold of $ .75). Another 20% of the croissant sales volume would come from bagels priced at $1(cost of goods sold of $.25).
There is a small fixed cost of introducing croissants an extra display case at a cost of $500. Should Pace Perk add croissants to their line of breakfast foods? Why?

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