Chapter 1, Problem 2RP

What should the company do?

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Accounting question please solve expert

answer ?? General accounting question

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A gourmet coffee shop currently sells 25,000 premium coffee cups annually at an average price of $5 each. It is considering adding a budget-friendly coffee option that sells for $3 each. The shop estimates it can sell 10,000 cups of the budget-friendly coffee, but by doing so, it will sell 4,000 fewer cups of the premium coffee. What is the total sales revenue that should be used when evaluating the addition of the budget-friendly coffee? A) $139,000 B) $142,000 C) $131,000 D) $135,000 E) $148,000

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Tokyo's Juice Bar operates a fresh juice stand at a local shopping center. Each juice requires 3/4 pound of mixed fruits, which are expected to cost $4 per pound during the summer months. Shop employees are paid $8 per hour. Variable overhead consists of utilities and supplies, and the variable overhead rate is $0.09 per minute of direct labor (DL) time. Each juice should require 4 minutes of direct labor time. 1. What is the standard cost of direct materials for each juice? 2. What is the standard cost of direct labor for each juice? 3. What is the standard cost of variable overhead for each juice?

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