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solve for a. 2. Harald Luckerbauer, the manager at Morning Brew Coffee Shop, would like to understand how adding Eiskaffee (a German coffee beverage of
solve for a.
2. Harald Luckerbauer, the manager at Morning Brew Coffee Shop, would like to understand how adding Eiskaffee (a German coffee beverage of chilled coffee, milk, sweetener, and vanilla ice cream) will alter the shop's productivity. His market research shows that Eiskaffee will bring in new customers and not cannibalize current demand. Assuming that the new equipment is purchased before Eiskaffee is added to the menu, Harald has developed new average daily demand and cost projections. The new equipment cost is $200, and the overhead cost is still $350. Modified daily demands, as well as selling price and material costs per beverage for the new product line, are given here in Table 2 : a. Using Table 1, calculate the labor productivity and the (combined) multifactor productivity of regular coffee, cappuccino, and Vienna Coffee. (Chapter 1) Step by Step Solution
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