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Stella operates a Cuban themed food truck that sells sandwiches and drinks to office workers in the downtown area of a mid sized city. Stella

Stella operates a Cubanthemed food truck that sells sandwiches and drinks to office workers in the downtown area of a midsized city. Stella has been approached by the GrabOn coupon company to enter a partnership arrangement with them, whereby GrabOn would, on their own website, sell coupons good for $20.00 worth of Stella's food and beverage products. The $20.00 coupons would sell for $10.00 each, and GrabOn would split the sales proceeds 50/50 with Stella.**** I nee The sold coupons would have a 30day expiration period, and GrabOn states that, in their experience, only 90 percent of the sold coupons will be redeemed prior to their expiration date.Stella operates a Cuban-themed food truck that sells sandwiches and drinks to office workers in the downtown area of a mid-sized city. Stella has
been approached by the Grab-On coupon company to enter a partnership arrangement with them, whereby Grab-On would, on their own website, sell
coupons good for $20.00 worth of Stella's food and beverage products. The $20.00 coupons would sell for $10.00 each, and Grab-On would split the
sales proceeds 5050 with Stella. The sold coupons would have a 30-day expiration period, and Grab-On states that, in their experience, only 90
percent of the sold coupons will be redeemed prior to their expiration date.
Stella has already begun forecasting the next 30 day's sales and product expenses (without the coupon program), as well as her estimated guest
count and CM per guest. Recalculate Stella's projected financial results assuming her original forecast and the sale of 10,100, and 500 Grab-On
coupons.
HINT: For coupon revenue, you are
only collecting 50% of the coupon
price per person
HINT: For coupon product cost, you
are only bringing in 90% of coupon
holders; and each is spending $20 in
food; so use the food cost when you
have 0 coupons. In this case, your
coupon cost % will be over 100%
HINT: Look at other formulas for answers
What will be the total change in her contribution margin if 500 coupons are sold?
If negative, use red and parantheses format with 2 digits
Would you recommend to Stella that she agree to the proposed partnership?
Drop down**
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