Table 1 shows information collected by the owner of Harbour Bean, a small coffee business. The owner is deciding which objective to set for the next year. C...
Question 1 Report
Table 1 shows information collected by the owner of Harbour Bean, a small coffee business. The owner is deciding which objective to set for the next year. Customers have said that quicker service may encourage them to return, but the manufacturer of the espresso machine has increased maintenance charges.
| Measure | Current result | Owner's proposed result |
|---|---|---|
| Average customer waiting time | 8 minutes | 4 minutes |
| Monthly sales revenue | $12 000 | $14 000 |
| Monthly costs | $9 500 | $9 700 |
(a) Identify the proposed percentage increase in monthly sales revenue. [2]
(b) What is meant by an objective in this coffee business? [2]
Answer Details
(a) First find the increase in monthly sales revenue:
\[\$14\,000-\$12\,000=\$2\,000\]
Then calculate the percentage increase using the original revenue:
\[\frac{\$2\,000}{\$12\,000}\times100=16.7\%\]
The proposed increase is \(16.7\%\), or approximately \(17\%\). [2]
(b) An objective is a specific target set by Harbour Bean. [1] It helps the business achieve its overall aim and guides decisions, such as whether to prioritise faster service, sales, or cost control. [1]
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