Pricing decisions. The marketing department of Pete's Coffee estimates the following monthly demand for espresso in these five price-volume relations at one of its outlets:

The fixed costs of $6,000 per month are the same for all of these volumes. Variable costs are $0.75 per cup. Which of these prices should Pete's charge for its espresso

Transcribed Image Text:

12345 1.. 6,000 cups at $1.85 per cup 5,000 cups at $2.25 per cup 2. 3. 4.000 cups at $2.50 per cup 3,000 cups at $2.75 per cup 2,000 cups at $3.00 per cup