Hello

The two ways that the café could reap increasing return of scale is to decrease the amount of money spent on raw material by switching to a supplier which supplies raw material at a lower cost and reduce number of full time worker from 3 to 2 and reduce the wages of the part time workers.

According to table 3, the cost of the raw material supplies is $10 per customer, which is 2/3 of what the customer paid for their meal, which is too high. After adding the other fixed cost and variable cost, the cost of each meal is much higher than price of each meal. Therefore, the café must find a supplier which sells the same quality raw materials which are lower at cost so that the cost of the raw material would not take up a big proportion of the price of the meal which is the revenue for the café

Secondly, the café should limit the number of full time worker from 3 to 2 because the number of full time worker to part time worker is around 1:1 and the café do not need too much full time workers to supervise the low number of part time workers and manage the average sized café. In addition, the wages for the part time worker is a bit too high and since the café relies on part time staff to operate the business, they should lower the wages so as to cut down on cost so that the business could earn more profit and reap increasing return of scale.