Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ASAP please Dana owns a food truck and has introduced a new type of healthy smoothie. In the first month she sold each cup for

ASAP please Dana owns a food truck and has introduced a new type of healthy smoothie. In the first month she sold each cup for BD 4.25 and has managed to sell 1,300 cups. The variable cost per cup is BD 2 and the fixed costs per month are BD 1,350. In the second month Dana has decided to increase the selling price per cup by 22%. However, this increase in the selling price led to a 37% decrease in the number of cups sold.
Required: (Round to the nearest cup)
Assuming that fixed costs would remain unchanged:
1- How much profit did Dana earn in the first and second months after introducing the healthy smoothie?
2- If Dana wants to make the same profit she earned in the first month, how many cups should be sold at the price of the second month?
3- Based on your results in requirement (1), was it better for Dana to keep the selling price of the first month or to increase the selling price by 22%? Why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Beginners

Authors: Kokab Rahman

1st Edition

149479294X, 978-1494792947

More Books

Students also viewed these Accounting questions