The monks within this monastery have created the MMC coffee brand in hopes to obtain the property through the revenue created by the business and any additional donations they may receive. Through the first year of this operation, they have earned $75,000 in revenue and also received a $250,000 donation, leaving them a substantial distance away from the purchase price. The current roaster produces 540 pounds per day but the monks hope to increase this through the purchase of a new roaster. This will have a production rate of 130 pounds per hour. Unfortunately, this will cost them $35,000, placing them further behind, but it is necessary if they wish to keep up with future demand. The majority of their sales have come through their website with minimal exposure els...
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...level of bargaining power, making it difficult to have all your needs met in the process. The costs associated with these negotiations can become significant and make possible deals not as profitable as simply keeping the business within their own location.
The greatest, most efficient option for MMC is to utilize is the second alternative; purchasing a new coffee roaster. The higher level of productivity allows them to meet all the demands they receive from their customers, increasing overall income. Weighing the advantages and disadvantages of all three alternatives, this offers MMC the greatest opportunity to succeed in reaching their go and purchasing the ranch. The increase
in production also benefits the Monks by making their time of devotion not such a burden on the business. A new roaster allows them to make up for this lost time during the day.
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