Answered step by step
Verified Expert Solution
Question
1 Approved Answer
answer as soon as possible Roasters Coffee house sells three types of drinks: brewed coffee, speciality iced drinks such as frappcuinos, and fresh squeezed juices.
answer as soon as possible
Roasters Coffee house sells three types of drinks: brewed coffee, speciality iced drinks such as frappcuinos, and fresh squeezed juices. The sales mix is noted below: Sales Mix Selling Price Variable Cost Contribution Margin ($) CM ratio $ $ $ Coffee Frappucino Fresh Juice 55% 10% 35% 3.25 $ 6.25 $ 4.80 1.45 $ 4.00 $ 3.85 1.80 $ 2.25 $ 0.95 55% 36% 20% al mighted average contribution margin ratio? umhare 5 (no decimals)) a) What is the total weighted average contribution margin ratio? (Do not enter any symbols, e.g. s. round your calculation to the nearest whole number e.g. 5 (no decimals)) Answer: b) Assume that break-even in sales dollars is $150,000. How many cups of COFFEE will need to be sold at the break-even level of sales dollars. (Do not enter any symbols, e.g. S. round your calculations to the nearest whole number, e.g. 5 (no decimals)) Answer: talon 5150 000. How many cups of each FRESH JUICE will need to be sold at the break- b) Assume that break-even in sales dollars is $150,000. How many cups of each FRESH JUICE will need to be sold at the break even level of sales dollars. (Do not enter any symbols, e.g. $. round your calculation to the nearest whole number 0.g. 5 (no decimals Answer: c) If Roasters eliminated their juice line and all of those customers purchase coffee instead, what would happen to the weighted average contribution margin? Would it increase or decrease from your answer in part a? The weighted average contribution margin would increase Hernan Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started