Biz-Café Calculating the Cost of making a Cup of Coffee. Ted Mitchell. Sources of Information. General Information in the student manual Coffee Calculator in game Materials Report in the game. Calculation for Variable Cost per cup. $ 5 per pound for good $6 per pound for best
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Biz-Café Calculating the Cost of making a Cup of Coffee
A Two-Factor Model for calculating the number of pounds of coffee to buy when selling medium size cups (16 oz.)
Output = Conversion rate x InputOutput = (Output/Input) x Input
Output: Pounds of coffee to buy this week, lbs
Conversion rate: given as 0.032
Input: Your Forecasted Number of medium cups that will be sold, Q What are the units in the conversion rate?
lbs = (lbs/Q) x Q
Conversion rate is written as 0.032 pounds per cup