Memo

#Task 1

#Task 2
Please see spreadsheet
#Task 3
Upside:

 Ice cream truck gives you more flexibility in rent, it will allow you not to enter the 10
year rent, so it could be more easier when you retire in 5 years. From financial aspect, it
could also reduce rental expense.
 Ice cream truck does perform good in making profit. However more market research
may need to be done about the future trend to determine its profitability in the next 5
years.
Downside:

 Ice cream truck could only operate in the Ma- to September, this leaves your business
with a very short operating period.
 Closing storefront could possibly affect customers’ confidence to the brand.

#Task 4
Issue:
Client’s Vision: To provide a place where customers know that they can have a non-dairy treat in an
allergy-friendly environment.

Client’s Mission: To be customers’ first choice for non-dairy frozen treats, made fresh with love.

Analyses:

It might not quite fit company’s business model since it sells product at both storefront and ice-cream
truck. At the trucks customers not necessarily get a place an environment around it. Therefore, it could
be modified to fit both methods.

Clients mission looks good.

Recommendation:

Change the vision to: To provide customers with non-dairy treat without allergy concern
#Task 5

Contribution Margin:

We get the contribution margin of each flavor by taking the selling price $6 and minus various cost. As
the result:

 Raspberry Rice 2.76

 Agave Almond 2.6
 Strawberry Soy 2.29
 Coconut Cream 2.1
 Coffee Cashew 1.83

Client should prioritize the products with the highest contribution margin and go down to the lowest
one as shown above, each products amount limited to its monthly demand.

As the result:

 Raspberry Rice: 3,500 units

 Agave Almond: 4,970 units
 Strawberry Soy: 4,300 units
 Coconut Cream: 6,200 units
 Coffee Cashew: 2,230 units