Problem:
Bob jitters owner of Virtual buzz Coffee "House is in a quandary. Many customers have expressed disappointment that Virtual Buzz does not serve espresso hot chocolate. Currently, it serves both espresso and hot chocolate separately but not together. The expresso sells for $1.75 per mug and costs $.50 to make. If bob were to make espresso hot chocolate, he would sell it for $2.50 but it would cost $1.40 per mug, respectively. Based on customer responses, Bob estimates that he would be cut in half Bob estimates that he could sell 500 mugs of the espresso hot chocolate to his product mix?
Should Bob add espresso hot chocolate to his product mix?