Yes, Mohammad should accept his friends suggestion.
By this he can analyse the needs and requirements of his customers in a better way. He can also pay attention to improving the service of the customer and spend time in maintaining healthy relations with his customers. By all this he can justify his prices to his customers. Another important thing that Mohammad should pay attention on is improving the quality of his products i.e breads and cakes. This can be done by training the employees, making them efficient.
Making dough himself might take a lots of time from Mohammad. He can invest this time in analysing where the things are going wrong in his business.
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