http://www.jumpinjuiceandjava.com/start.htm

*Latest health craze

*Packed with fresh fruit

*Nutritious, filling, and energizing!

*Great choice for a breakfast on the go

*Refreshing mid-afternoon snack

http://www.jambajuice.com/

*1990- opened the 1st restaurant in San Luis Obispo(called Juice Club)

*Founders included: Kirk Perron, Linda Ozawa Olds, Kevin Peters, and Joe Vergara

*1993- opened its 2nd and 3rd restaurants in Northern and Southern CA

*1995- changed name to Jamba Juice

*Now has hundreds of restaurants across the country (nearest is in Madison)

*Creates nutritious concoctions of fresh-squeezed juices

*Smoothies are always made to order

*Make healthy living delicious, nutritious, and fun!

*Goal is to celebrate the flavors of life by providing choices its customers can feel good about

*Offers vitamin and energy-enhanced boosts

*Wholesomely nutritious:-low in fat-high in fiber-100% natural (no sugar additives)

*44 students at Ashwaubenon High School

*Attempted to get a fairly representative sample: - 1 small English class of all seniors - 2 math classes of freshmen and sophomores

*Data Problems - not a well-known company - may have affected demand - some chose a price not presented (data discarded)

*Questions asked on survey- most popular time = lunch

Qd Price0 $4.50

25 $4.0050 $3.50175 $3.00350 $2.50600 $2.00800 $1.50

1,000 $1.001,050 $0.501,075 $0.00

Demand for Jamba Juice Smoothies

$0.00$0.50$1.00$1.50$2.00$2.50$3.00$3.50$4.00$4.50$5.00

0 200 400 600 800 1,000 1,200

Quantity Demanded

Pric

e

Qs Price1,200 $4.501,100 $4.001,000 $3.50800 $3.00600 $2.50400 $2.00200 $1.5080 $1.0020 $0.500 $0.00

Supply of Jamba Juice Smoothies

$0.00$0.50$1.00$1.50$2.00$2.50$3.00$3.50$4.00$4.50$5.00

0 200 400 600 800 1,000 1,200 1,400

Quantity Supplied

Pric

e

Equilibrium for Smoothies

$0.00$0.50$1.00$1.50$2.00$2.50$3.00$3.50$4.00$4.50$5.00

0 200 400 600 800 1,000 1,200 1,400

Quantity

Pric

e

*Qd = Qs

~theoretically there should be no surplus and no shortage

~consumer-friendly price

*Land - Set up a table in the commons and sell between 1st and 2nd hour as well as lunch - Raw materials needed in production include fresh fruit (warm climate)*Labor - Workers will be responsible student volunteers - All helpers rewarded with a 20% discount on smoothies *Capital - Advisor will provide start-up financial capital and the loan

will be repaid with profits later - Equipment like blenders are needed in

the actual production but not on the school’s end as far as distributing - Must pay for advertising around school

*Entrepreneurs - the advisor of the AHS group is the risk-taker

*Total revenue = Qd x Price= 500 (2.25)= $1,125

*Total cost of goods = Qs x Price= 250 (4.30)= $1,075

*Price product is sold at = $2.25*Buy in bulk from supplier (32 oz.) = $4.30

*Total revenue - total cost = $1,125 - $1,075 PROFIT = $50

*The profits made are in the end are not high enough to make the efforts worth it

*Demand for smoothies exists but not at a high enough price to exceed the cost of the goods sold from this particular company

-not a significant enough profit made through Jamba Juice