REVIEW CASE ONE: MYSTIC MONK COFFEE 2
Father Daniel Mary, the prior of the Carmelite Order of monks, would like to purchase a
nearby ranch to expand the monastery. Father Daniel Mary would like to know if the
monastery’s Mystic Monk Coffee business is capable of generating profits to help raise money
for the sell.
Mystic Monk Coffee is a small internet based business created by the Carmelite Order of
monks in Clark, Wyoming. The small coffee bean company sells whole coffee beans and ground
caffeinated and decaffeinated varieties via a website primarily targeted to Catholic coffee
consumers. In addition to coffee beans, Mystic Monk Coffee sells coffee accessories. Let’s
begin by examining Mystic Monk’s current financial performance at the conclusion of the first
year in operation:
Monthly Sales $56,500
Cost of Goods
(Cost of sales 30%)
(Cost of inbound
shipping 19%)
52% = $29,380