In this module, we are focusing on using analysis to make
business decisions. For this discussion, you will first complete a
mini case analysis, and then will share your results with your
classmates.
PART 2: SPECIAL-ORDER PRICING FOR A SNOWIE
EVENT
Assume that Main Street Kent, an organization that hosts outdoor
events in downtown Kent, approaches you about bringing your Snowie
kiosk to the Octoberfest in Kent for one day in October. Main
Street Kent will provide the cups for the event that are branded
with the Kent Octoberfest logo, so you will not have any cup costs
for this event. Main Street Kent will also not be charging you a
registration fee for this event. Main Street Kent will allow you to
advertise your business in its mailings for two months at no cost
and asks you to cut your Snowie price for this one event to US$3.00
in exchange for the free advertising. You have no other event
scheduled for this one day in October, and you would work the event
by yourself (you will not pay an employee for this one-day event).
You anticipate that you will sell 200 Snowies on this one day at
Octoberfest. Do you accept Main Street Kent’s special price offer?
Why or why not? Support your answer.
Costs All listed costs relate to the large size Snowie
Ice per Snowie
$0.20
Spoon straw (need one per Snowie)
$0.02
Styrofoam cup (need one per Snowie)
$0.08
In this module, we are focusing on using analysis to make business decisions. For this discussion, you will first comple
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