Question

You’ve invested a lot in Moondogs -- now you need to find the right price to charge for your coffee. It has to be low enough to attract business, but high enough to ensure you make a profit. What’s a good step in figuring out the right price?

Answer 1

Steps to figure out the right price of coffee would be :-

Explanation

1.Expenditure - Analyse the amount that has been uncured in the process of making the coffee. It should include all the raw material and other expenses such as services taken of people as well as assets purchased as well.

2. Profit Margin - A standard percentage of profit margin should be set which would be added in the expenditure of the coffee. This would give us the right price of the coffee per cup.