Chrome File Edit View History Bookmarks Profiles Tab Window Help D G X Q Mon Mar 6 8:21 PM Question 7 X Homework X Homework X Homework X Homework X *Homework X Homework X Homework > 64 8:21 C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewc... B Paused A 00:35 D2L Homepage - Pima... Class ACC 212 Ma... Pima Community. M Inbox (6) - bburns. Ex Pima Community.. Chapter 5 Homework i Saved Help Save & Exit Submit E 01:05 Check my work Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup. MEMORY HOT CUE INFO During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would receive a 25 percent discount each time they return with the cup to buy a cup of coffee. Each week Starcups serves 49,000 customers, who purchase an average of 3.00 cups of coffee per week (147,000 cups total). 3 Starcups's contribution margin income statement for a typical week is shown below: X points X X Units Per Unit Total X Sales Revenue 147 , 000 $ 5. 80 $ 852, 600 X eBook Variable Costs 147 , 000 2 . 40 352 , 800 Contribution Margin 147 , 000 $ 3. 40 $ 499, 800 MEMORY HOT CUE INFO Hint Fixed Costs 109, 000 Net Operating Income $ 390, 800 Print Collection (1516 Tr References Assume the new cup promotion is expected to impact sales volume, revenue, fixed, and variable costs as follows: Artwork Tra . Starcups estimates that 25 percent of its current customers (12,250) will participate in the promotion. The remainder of its N existing customer base (36,750) will continue to buy an average of 3.00 cups of coffee per week. Starcups expects to attract 5,900 new customers to participate in the promotion. . Customers who participate in the promotion will pay an additional $1.00 for the reusable cup. They will then receive a 25 percent discount on repeat visits when they bring back their reusable cup. . The additional variable cost of purchasing the reusable cup is $2.90. The variable cost savings of the paper cup is $0.40. . Starcups expects that customers who participate in the reusable cup promotion will visit an average of 5 times per week, including the first purchase of the reusable cup. Starcups will spend a total of $19,000 per week advertising the reusable cup promotion. Required: 1. Prepare a contribution margin income statement to predict how the reusable cup promotion will impact weekly net operating income. 2. Compute the difference in total revenue, total variable costs, total contribution margin, total fixed costs, and total operating income hefore and after the promotion Mc Graw Hill 6 4 Ai SONOS PS Live Live LiveChrome File Edit View History Bookmarks Profiles Tab Window Help D G X Q Mon Mar 6 8:21 PM Question 7 X Homework X Homework X Homework X Homework X *Homework X Homework X Homework > 64 8:21 C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewc... B Paused A 00:35 D2L Homepage - Pima... Class ACC 212 Ma... Pima Community... M Inbox (6) - bburns.. Exs Pima Community... Chapter 5 Homework i Saved Help Save & Exit Submit E 01:05 Check my work 7 MEMORY HOT CUE INFO Required 1 Required 2 Required 3 3 Prepare a contribution margin income statement to predict how the reusable cup promotion will impact weekly net operating X points income X Note: Round your per unit answers to 2 decimal places" at indicated place X X Units Per Unit Total X eBook Customers who do not participate: MEMORY HOT CUE INFO Hint Sales revenue Print Variable costs Collection (1516 Tr References Contribution margin First purchase for customers to buy the reusable cup: Artwork Tra N Sales revenue Variable costs Contribution margin Repeat visits for customers who buy the reusable cup: Sales revenue Variable costs Contribution margin Required 1 Required 2 > Mc Graw Hill E Ai SONOS PS Live Live LiveChrome File Edit View History Bookmarks Profiles Tab Window Help D G X Q Mon Mar 6 8:22 PM Question 7 X Homework X Homework X Homework X Homework X Homework X Homework X Homework > 64 8:22 C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewc... B Paused A 00:35 D2L Homepage - Pima... Class ACC 212 Ma... Pima Community. M Inbox (6) - bburns.. Ex Pima Community.. Chapter 5 Homework i Saved Help Save & Exit Submit E 01:05 Check my work 7 Requirea: MEMORY HOT CUE INFO 1. Prepare a contribution margin income statement to predict how the reusable cup promotion will impact weekly net operating income. 2. Compute the difference in total revenue, total variable costs, total contribution margin, total fixed costs, and total operating 3 income before and after the promotion. X points 3. How will this sustainability initiative impact the company's triple bottom line? X X X eBook Complete this question by entering your answers in the tabs below. X MEMORY HOT CUE INFO Hint Print Required 1 Required 2 Required 3 Collection (1516 Tr References How will this sustainability initiative impact the company's triple bottom line? Artwork Tra N How will this sustainability initiative impact the company's triple bottom line? Required 2 Required 3 Mc Graw Hill E 90 Ai SONOS PS Live Live Live