Here’s the tasks to do:1. Calculate the total cost of production for each product and the total fixed costs for the month.2. Compute the total revenue for each product before and after the market change.3. Determine the profit or loss for the café both before and after the market change. 4. Calculate the break-even point for the café as a whole, in terms of total revenue needed to cover costs.5. Based on your findings, answer the following questions: a. Which product contributes the most to your profit? b. Is lowering the price of sandwiches an effective strategy? Why or why not?c. What changes would you suggest to increase overall profitability? Situation: You are the owner of a mini café thatsells three main products: coffee, pastries, andsandwiches. You want to analyze yourbusiness's financial performance and strategizeto maximize profit.Product Information:Coffee: Costs Php 55 per cup to produce; soldat Php 65 per cup.Pastries: Costs Php 4.50 each to produce; soldat Php 7 each.Sandwiches: Costs Php 17.50 each to produce;sold at Php 20 each.Fixed Costs:Monthly rent and utilities: Php 2,500Monthly salaries: Php 8,000/employee (2employees) Projected Sales (per monthly):Coffee: 1,500 cupsPastries: 1,200 piecesSandwiches: 750 piecesMarket Change:Due to local event, the demand for coffeeincreases by 25% while the demand for pastriesdecreases by 18%. To attract more customers,you decide to reduce the price of sandwiches toPhp 19.

Answered: Situation: You are the owner of a mini…

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter3: Functions

Section3.CM: Cumulative Review Exercises

Problem 19CM: Dental billing The billing schedule for dental X-rays specifies a fixed amount for the office visit...

See similar textbooks

Related questions

Question

Here’s the tasks to do: 1. Calculate the total cost of production for each product and the total fixed costs for the month. 2. Compute the total revenue for each product before and after the market change. 3. Determine the profit or loss for the café both before and after the market change. 4. Calculate the break-even point for the café as a whole, in terms of total revenue needed to cover costs. 5. Based on your findings, answer the following questions: a. Which product contributes the most to your profit? b. Is lowering the price of sandwiches an effective strategy? Why or why not? c. What changes would you suggest to increase overall profitability?