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

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter3: Cost-volume-profit Analysis
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Problem 6EA: Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of...
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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
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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