Aisha is the owner of a successful chain of cafes called…

BrigadierTurtlePerson4855 Aisha is the owner of a successful chain of cafes called… Aisha is the owner of a successful chain of cafes called “Neighborhood Café” in the Pacific Northwest.
Almost 15 years ago, she opened her first café with the goal of creating a comfortable environment for locals in the community to gather. In addition to a welcoming and cozy atmosphere, her goal is to utilize sustainable materials for the furniture and fixtures in the stores as well source ingredients and products from local businesses. Aisha prides herself in making careful selections for her cafés for everything from chairs to coffees beans. Neighborhood Cafés now has 24 locations concentrated in Seattle, Spokane, and Portland.
In addition to selling coffee, tea, and baked goods for her customers to enjoy in the café, Neighborhood Café also sells specialty loaves of bread for her customers to enjoy at home. Recently, Aisha found out that the bakery she had used to supply loaves of bread for her nine cafés in Seattle is going out of business. She is saddened to learn that the bakery, called Love Loaves, had to declare bankrupcy because it had been unable to generate enough cash flow to make its monthly loan payments. Aisha needs to find a new bread supplier quickly to ensure her Seattle customers will continue to be able enjoy delicious bread.
To identify suppliers who are interested in supplying bread to Neighborhood Cafés, Aisha sent out a request for proposal (RFP) to bread suppliers.” In the RFP, Aisha asked for various pieces of information such as company values, financial position, price, delivery frequency, ingredients, and cost structure. In response to the RFP, Aisha received four proposals. She quickly narrowed her choices down to two suppliers because they prioritized sustainability, consistent with her values: Yummy Northwest and Baking Right. To decide between the two suppliers, Aisha needs to look closely at financial viability by analyzing the income statements and a balance sheets for each of the suppliers. She also needs to understand how many loaves of bread she needs to sell to break-even if she were to choose one supplier over the other.
The financial statements Yummy Northwest and Baking Right provided are in Appendix A. Regarding pricing, Yummy Northwest charges an annual fee of $9,900 plus a price per loaf of $1.60. Baking Right does not charge an annual fee and just charges a price per loaf of $1.70. Aisha’s annual fixed costs for Neighborhood Café specific to the bread division of the business are $39,000 and she charges her customers $4.50 per loaf of bread. Aisha’s current bread supplier, Loves Loaves, charges $1.75 per loaf Aisha needs to determine which of the two suppliers provides better potential for a long-term relationship and puts her in a stronger financial position. Image transcription text1. Calculate financial ratios for Yummy Northwest and Baking Right using the spreadsheet provided. (Showratios in the format shown in Exhibit 15.6 from the textbook. For example, Return on Sales and Return onEquity should be percentages, other ratios should be decimals, and all values should be rounded to … Show more… Show more BusinessBusiness – Other