Question
Scenario One: What if Analysis Your client is unsure if he should sell beer at the diner. He thinks he can sell a beer to
Scenario One: What if Analysis Your client is unsure if he should sell beer at the diner. He thinks he can sell a beer to every other customer and it seems to be lucrative because the beer sells for $4.75 each and costs him only $1.10 to purchase. Unfortunately your client is afraid that he would cannibalize his soft drink sales with the beer customers (one soft drink less for every beer sold). It will cost him $5,250 to purchase the beer license from the county and his monthly insurance costs would rise by another $375 per month. What is your recommendation: Should your client offer beer to his customers? Scenario Two: What if Analysis A former school friend of your client is an amateur pop band and has planted the idea in your clients head of adding a little music to provide live entertainment on the weekends (Friday and Saturday). The friend states he can guarantee 7 more customers per hour if your client will hire him at $1,950 a month. What is your recommendation: Should the band be hired?
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