discuss the effect that the change in sales mix might have had on starbucks breakeve 613997
Starbucks, a company that has set out “to become the leading retailer and brand of coffee,” operates retail outlets in a variety of locations, including downtown office buildings, university campuses, and suburban malls. These retail outlets sell more than coffee and related beverages. The following chart shows the retail sales mix for 2005 and 2009.
|
2005 |
2009 |
|
|
Beverages |
77% |
76% |
|
Food items |
15% |
18% |
|
Whole coffee beans |
4% |
3% |
|
Coffee-making equipment and accessories |
4% |
3% |
Required
- Discuss the effect that the change in sales mix might have had on Starbucks” breakeven point and operating income.
- Assume that equipment and accessories have a higher contribution margin ratio than food items. Was the decrease in the percentage of sales provided by equipment and accessories a desirable outcome in 2009?
- Within the equipment and accessories line, do you think all products have the same contribution margin? Why or why not?