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Styles Editi 1.) Cremeland is a local ice cream shop. The company currently is showing an operating loss, as evidenced by the income statement below:
Styles Editi 1.) Cremeland is a local ice cream shop. The company currently is showing an operating loss, as evidenced by the income statement below: Sales $75,000 Costs Food supplies Labor Utilities Rent Other Manager's salary 20,000 16,000 4,000 12,000 Total Costs Operating Profits (Losses) 25.000 81,000 (S6,000) The owner of the company is considering adding sandwiches to the menu. Sales will be expected to increase by $60,000. The cost of sandwich supplies would be $30,000. Labor costs would increase 40% and other costs 10%. The current manager will continue to manage the operation. a. Prepare a quantitative analysis of the decision to add sandwiches to the menu. b. What qualitative considerations should the company consider in this decision? Please list a minimum of 3
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