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Copacabana Coffee. Copacabana Coffee Inc. currently produces a single product - packages of high quality Brazilian coffee for sale in grocery stores (brand name El
Copacabana Coffee. Copacabana Coffee Inc. currently produces a single product - packages of high quality Brazilian coffee for sale in grocery stores (brand name El Cof Matador). It sells this product for $19 per unit (package). Current (maximum) production capacity is 20,000 units per month. Cost information is as follows: Coffee beans $8.00/unit 0.2 hours per unit $15/hour $68,000/month 53-00/unit Advertising costs are not incurred if the product is sold directly to customers. Requued: 1. Calculate per unit contribution margin, monthly break-even volume, and monthly volume required to generate $30,000 in profit per month. Copacabana is currently only able to sell 18,000 units each month. The owner of a local restaurant offers to buy 1,000 units per month for $12.75 per unit. Should Copacabana accept this order? Explain, showing calculations and indicating any assumptions. Ignore 2. above. Copacabana is considering introducing a new product, tentatively branded Acoro'a os Mortos. Copacabana plans to sell this product for $25/unit; for this new product, direct materials costs (a higher quality coffee bean) are $11.00/unit. 20 minutes of direct labor is required for each unit. Advertising costs are unchanged. Due to a shortage of labor, Copacabana is constrained to 3,000 hours of direct labor per month. How many units of each product should it produce each month to maximize profits
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