Starbucks

Starbucks workers are on strike and one of the things they want is a 60% wage increase. They currently earn $18 per hour and this would mean a $10 per hour raise. Since wages represent 35% of the cost of the finished product, the average coffee is $4.50 so the new price would be 35% of 60% times $4.50 or $1 per coffee. Would most customers be willing to pay and extra dollar for a cup if they knew the money was going to the employees in the form of wages. The new wage of $28 per hour equates to $56,000 per year which is $9,000 below the average wage. They are asking for 60% with the hope of getting 30% which would mean 50 cents per cup. When you start negotiating you ask for the moon.