You own a business that sells coffee beans and coffee gift packs. You have the following information that relates to a special order for the next week of your trading: The following is relevant for the special order next week: -You have a goal to make $528 profit on coffee beans -You have a goal to make $1,595 profit on coffee gift packs Key financial data includes: Coffee gift packs per unit: Selling price = $44 Variable cost = $22 Coffee beans per unit: Selling price = $5.50 Variable cost = $2.20 Total fixed costs = $2,376 Required: 1) If 150 units of coffee beans were included in the special order, how many coffee gift packs would need to be sold in the special order to earn your desired total profit 2) Do a profit calculation to support your answer and show the total profit from the special order accounting for all costs. Show all workings
You own a business that sells coffee beans and coffee gift packs. You have the following information that relates to a special order for the next week of your trading:
The following is relevant for the special order next week:
-You have a goal to make $528 profit on coffee beans
-You have a goal to make $1,595 profit on coffee gift packs
Key financial data includes:
Coffee gift packs per unit:
Selling
Variable cost = $22
Coffee beans per unit:
Selling price = $5.50
Variable cost = $2.20
Total fixed costs = $2,376
Required:
1) If 150 units of coffee beans were included in the special order, how many coffee gift packs would need to be sold in the special order to earn your desired total profit
2) Do a profit calculation to support your answer and show the total profit from the special order accounting for all costs. Show all workings
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