Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Coffee Platch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is 2.39 and the average

Coffee Platch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is 2.39 and the average variable expense per cup is 0.47. Other information are as follows:

i. The average fixed expense per month is 1255.

ii. The target profit for the month is 2600.

iii. Sales increases by 15%

Determine the following:

a. Cups of coffee would have to be sold to attain the target profit.

b. Sales revenue that must be generated to attain the target profits

c. CM per unit

d. CM ratio

e. BE in units

f. BE in sales

g. MOS in Units

h. MOS ratio

i. MOS

j. OL

h. Increase in profit %

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

Step: 3

blur-text-image

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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

Students also viewed these Accounting questions

Question

Why are catalogue sales growing? AppendixLO1

Answered: 1 week ago