Kristen’s Cookie Company
You and your roommate are preparing to start Kristen’s Cookie Company in your on‐campus apartment. The company will provide fresh cookies to starving students late at night. You need to evaluate the preliminary design for the company’s production process to figure out many variables, including what prices to charge, whether you will be able to make profit and how many orders to accept. Business Concept
Your idea is to bake fresh cookies to order, using any combination of ingredients that the buyer wants. The cookies will be ready for pickup at your apartment within an hour. Several factors will set you apart from competing products such as store‐bought cookies. First, your cookies will be completely fresh. You will not bake any cookies before receiving the order; therefore, the buyer will be getting cookies that are literally hot out of the oven. Second, you will have a variety of ingredients available to add to the basic dough, including chocolate chips, M&M’s, chopped health bars, coconut, walnuts and raisins. Buyer will telephone in their orders and specify which of these ingredients they want in their cookies. You gurantee completely fresh cookies. In short, you will have the freshest, most exotic cookies anywhere, available right on campus. The production process
Baking cookies is simple: mix all the ingredients in a food processor; spoon out the cookie dough onto a tray; put the cookies into the oven; bake them; take the tray of cookies out of the oven and carefully pack them in a box. You and your roommate already own all the necessary capital equipment: one food processor, cookie trays, and spoons. Your apartment has a small oven that will hold one tray at a time. Your landlord pays for all the electricity. The variable ...
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