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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

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