UT REFERENCES MATLINGS REVIEW VIEW A 1Normal 1NoSpac Headi

UT REFERENCES MATLINGS REVIEW VIEW ,-. A-. | 1Normal 1NoSpac Heading 3 Styles ,A-, Heading 1 Heading 2 Paragraph Applying Cost-Benefit Analysis Opening a Drive-thru Margarita/Daiquiri Stand Scenario Believe it or not, in the 1980s in Denton, Texas (where I grew up) there was a drive-thru liquor store that sold frozen margaritas made out of wine. There were several flavors of margaritas to choose from; different drink sizes; and one could order special additions on the rims of the cups-sugar, salt, etc.- for an additional charge. So, I did a little research on this topic and found out that this business is still booming according to the newspaper of my old alma mater (Texas A&M; University newspaper, The Battalion). Click on the following link to read about how this can be possible in Texas, Drive-thru liquor: Convenience stores walk thin line on open container laws. You own a convenience store in Sioux Falls, SD and want to add margaritas and daiquiris to-go to your business and sell these frosty beverages through the drive-thru window. (Disclaimer: For those of you who have an entrepreneurial spirit, I am not suggesting that you open a business to sell these beverages in a drive-thru window.) Plan of Action Step 1: Create of list of potential costs for adding a drive-thru window to your current wine and liquor store to launch this new endeavor. Of course you will need to construct the drive-thru window, add new equipment to make the margaritas, materials to serve the beverage, a new wine license for the sale of open-container beverages, and training for employees to identify intoxicated drivers (in your community it is not illegal to drink and drive, but it is illegal to drive drunk). In addition, you will need employees to work the window and make the beverages, and your overhead will increase (electricity, air conditioning and heat costs (drite-up windows increase these expenses), and building and grounds maintenance) to name a few expenses. Think about what else you might need to add to this list Oa the benefit side, you are assuming that this new product will increase your revenue. What else might increase snacks and related products such as limes, coolers to store \"extra margaritas, ice Tums for heartburm, cigarettes, etc. Be creative and construct a list of the costs and benefits. Follow the example in Module 5 by adding hypothetical S$ for these costs and benefits to determine if this new initiative should be launched

Solution

Name : Call a cocktail Cost Benefit Analysis Report Quantitative analysis Monthly Yearly Non-recurring costs Outside styling - Paints and Boards 120 Wine license 11 Rent broker fee+security 13 bar refrigerators & freezers 130 Other equipment 20 cocktail shakers & strainers, liquor pourers , speed rail and racks 50 Storage racks 30 cookware 70 kitchen cutlery 20 Customised aprons 10 Total Non-recurring costs 474 Recurring costs elecctricity 96 1152 building and ground rent and maintenance 200 2400 Salary 1 bartender 20000 240000 Flavouring syrups 30 360 garnishes & toppings 40 480 mixers - soda etc 30 360 Eco-friendly Disposables+ stirrers + straws 80 960 Packing material 80 960 Printed tissue paper 10 120 advertisement 115 1380 menu printing 100 1200 janitorial storage 40 480 Total recurring costs 20821 249852 Total costs 20821 250326 Benefits Drinks sale ( average drink @ $ 15 and 40 customers daily) 18000 216000 Ready to serve Snacks & Pastries ( outsourced - saving of 2 $ / burger) 30 sold daily 1800 21600 Coolers ( average drink @ $ 10 and 25 customers daily) 7500 90000 cigarates 600 7200 Chewing gum toffes 400 4800 chocolates 2000 24000 Total benefits 30300 363600 Net Benefit 9479 113274