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 9,800 cups at $0.95 per cup 2 7,400 cups at $1.15 per cup 3 6,400 cups at $1.35 per cup 4 3,900 cups at $1.55 per cup The fixed costs of 2,700 per month are not affected by the different price-volume alternatives. Variable costs are $0.20 per cup. What price should Central Perk Coffees set for this coffee. Sales Variable Costs Contribution Margin 1 2 3 4
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 9,800 cups at $0.95 per cup 2 7,400 cups at $1.15 per cup 3 6,400 cups at $1.35 per cup 4 3,900 cups at $1.55 per cup The fixed costs of 2,700 per month are not affected by the different price-volume alternatives. Variable costs are $0.20 per cup. What price should Central Perk Coffees set for this coffee. Sales Variable Costs Contribution Margin 1 2 3 4
Chapter10: Short-term Decision Making
Section: Chapter Questions
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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
What price should Central Perk Coffees set for this coffee.
Demand
1 | 9,800 cups at $0.95 per cup |
---|---|
2 | 7,400 cups at $1.15 per cup |
3 | 6,400 cups at $1.35 per cup |
4 | 3,900 cups at $1.55 per cup |
The fixed costs of 2,700 per month are not affected by the different price-volume alternatives. Variable costs are $0.20 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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