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Review the Cafe Xaragua case and the following questions and prepare your response in an excel document. Please include a cover page with your name, your instructor's name and the name and number of the course. Your response to each of the required MUST be included on a separate worksheet tab and each tab should be named Q1; Q2; and so on. Anything beyond the five questions or not named as such will not be marked.
1. From a qualitative viewpoint, discuss the pros and cons of Robert Lehnert and his partners launching this venture.
2. Identify all costs associated with this venture. Categorize these costs as fixed, variable and one time investment.
3. How long could the Cafe survive without any customers?
4. Calculate the contribution margin for each product sold. Calculate the weighted average contribution margin per customer. How many customer visits will the Café need in order to break even assuming a full time manager is hired? Prepare calculation of net profit before tax using the best and worst level of volume given in the case.
5. As Lehnert, would you launch the venture? Why or why not? Discuss both quantitatively and qualitatively
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You're in the job interview and your possible employer asks you to explain the differences between the flexible and static budget and to explain which you would recommend for the small business and why. How would you respond to this potential empl..
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