Homework Help is Here – Start Your Trial Now!
Business
Economics
Cafe x is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Increased Price for Small Coffee Cafe X is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small to $2.75, and they project that sales of smalls will go down while sales of mediums and larges will go up slightly. Fill out the tables below to calculate the projected change in gross margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Price per Cup Cost per Cup Small $2.50 50.20 2,500 Medium $3.50 50.35 1,400 Large $4.50 50 50 700 Total Increased Price for Small Coffee Cups Sold Revenue Price per Cup Cost per Cup Est. Change in Cups Sold with Small $2.75 Cups Sold Small $2.75 $0.20 10% Medium $3.50 $0.35 .6% Large $4.50 $0.50 +3% Total O 5 0 $ 0 $0 Revenue COGS $ 0 4. AT 4. COGS Gross Margin S 5 $ 5 0 0 S $ S 0 4 Gross Margin F

Cafe x is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Increased Price for Small Coffee Cafe X is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small to $2.75, and they project that sales of smalls will go down while sales of mediums and larges will go up slightly. Fill out the tables below to calculate the projected change in gross margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Price per Cup Cost per Cup Small $2.50 50.20 2,500 Medium $3.50 50.35 1,400 Large $4.50 50 50 700 Total Increased Price for Small Coffee Cups Sold Revenue Price per Cup Cost per Cup Est. Change in Cups Sold with Small $2.75 Cups Sold Small $2.75 $0.20 10% Medium $3.50 $0.35 .6% Large $4.50 $0.50 +3% Total O 5 0 $ 0 $0 Revenue COGS $ 0 4. AT 4. COGS Gross Margin S 5 $ 5 0 0 S $ S 0 4 Gross Margin F

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
Cafe x is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Increased Price for Small Coffee Cafe X is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small to $2.75, and they project that sales of smalls will go down while sales of mediums and larges will go up slightly. Fill out the tables below to calculate the projected change in gross margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Price per Cup Cost per Cup Cups Sold Small $2.50 50.20 2,500 Medium $3.50 50.35 1,400 $0 Revenue $ 0 $ 0 Large $4.50 50.50 700 0 $ 0 Total $ 0 Increased Price for Small Coffee Price per Cup Cost per Cup Est. Change in Cups Sold with Small $2.75 Cups Sold Small $2.75 $0.20 -10% Medium $3.50 $0.35 16% Large $4.50 $0.50 +3% Total 0 5 0 Revenue COGS Gross Margin $ 0 COGS 5 $ 5 о 0 0 $ o 0 0 Gross Margin
Transcribed Image Text:Cafe x is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Increased Price for Small Coffee Cafe X is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small to $2.75, and they project that sales of smalls will go down while sales of mediums and larges will go up slightly. Fill out the tables below to calculate the projected change in gross margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Price per Cup Cost per Cup Cups Sold Small $2.50 50.20 2,500 Medium $3.50 50.35 1,400 $0 Revenue $ 0 $ 0 Large $4.50 50.50 700 0 $ 0 Total $ 0 Increased Price for Small Coffee Price per Cup Cost per Cup Est. Change in Cups Sold with Small $2.75 Cups Sold Small $2.75 $0.20 -10% Medium $3.50 $0.35 16% Large $4.50 $0.50 +3% Total 0 5 0 Revenue COGS Gross Margin $ 0 COGS 5 $ 5 о 0 0 $ o 0 0 Gross Margin
Expert Solution
steps

Step by step

Solved in 4 steps with 8 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Profits
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS