Question

Added value
Case study: Rakesh's bakery
Rakesh owns a small bakery selling bread, cakes and
biscuits His business is just making enough money to
survive. His wife, Neeta, had the idea of serving customers
tea and coffee at two small tables that could be fitted into
the bakery shop Customers will pay more for each cake
and biscuit if we sell them with tea or coffee -just like a little
café Rakesh bought some second-hand café equipment and
furniture and tried what Neeta had suggested. She was right!
Some of his customers not only bought teas and coffees but
they paid higher prices for the cakes and biscuits they bought
as they were served them on a plate!
Rakesh had increased the value added to the flour
sugar and butter he used to make these cakes and
biscuits
Activity 1.3
Refer to the case study above.
at the best-selling cake in this bakery uses 30 cents worth of flour, sugar and butter
and Rakesh sells each one for 51. calculate the value added
b If customers are prepared to pay 51 50 when this cake is served on a plate at a table
within the bakery, what is the new value added per cake?
Does the opening of the small cale mean that Rakesh must have increased his
weekly profit? Explain your answer
International business in focus​

Answer 1

Answer:

yes ofcourse his weekly profit increase coz also his sales increase

Explanation:

Answer 2

Answer:

1) the new value added is 70 cents

Explanation:

this is because $1 has hundred cents so he was selling