Question

If a person steals one of the high profit margin items, how many more does Starbucks have to sell to make up the cost of the stolen item? How many for the lowest profit margin item? Write a one page explaining.

Answer 1

The premier profit margin items such as Frappuccino, adds up to 91% gross profit and the bottommost selling products such as Mazagran backs only 9% gross profit on outlay therefore if somebody steal the high profit margin items, Starbucks will have to trade up to ten of the low profit margin to recover the marginal profit of one of the high
profit items. Starbucks don’t make several of their food items on the locations but somewhat elected to buying their food items from other companies and so they merely become retailers of those goods. They seem to be missing the crucial apparatus required to making bakery items and they don’t have the space to produce the sandwiches, salads and other bread filled products.