he marketing department of Central Perk Coffees estimates the following monthly demand for high-test dark roast coffee in these four price-quantity relationships: Demand 1 9,300 cups at $0.90 per cup 2 7,400 cups at $1.15 per cup 3 5,600 cups at $1.40 per cup 4 4,500 cups at $1.65 per cup The fixed costs of 2,200 per month are not affected by the different price-volume alternatives. Variable costs are $0.25 per cup. What price should Central Perk Coffees set for this coffee. Sales Variable Costs Contribution Margin 1 2 3 4
he marketing department of Central Perk Coffees estimates the following monthly demand for high-test dark roast coffee in these four price-quantity relationships: Demand 1 9,300 cups at $0.90 per cup 2 7,400 cups at $1.15 per cup 3 5,600 cups at $1.40 per cup 4 4,500 cups at $1.65 per cup The fixed costs of 2,200 per month are not affected by the different price-volume alternatives. Variable costs are $0.25 per cup. What price should Central Perk Coffees set for this coffee. Sales Variable Costs Contribution Margin 1 2 3 4
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6EA: Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of...
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Question
The marketing department of Central Perk Coffees estimates the following monthly demand for high-test dark roast coffee in these four price-quantity relationships:
Demand
What price should Central Perk Coffees set for this coffee.
Demand
1 | 9,300 cups at $0.90 per cup |
---|---|
2 | 7,400 cups at $1.15 per cup |
3 | 5,600 cups at $1.40 per cup |
4 | 4,500 cups at $1.65 per cup |
The fixed costs of 2,200 per month are not affected by the different price-volume alternatives. Variable costs are $0.25 per cup.
What price should Central Perk Coffees set for this coffee.
Sales | Variable Costs | Contribution Margin | |
---|---|---|---|
1 | |||
2 | |||
3 | |||
4 |
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