Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dana owns a food truck and has introduced a new type of healthy smoothie. In the first month she sokd each cup for 8D350 and

image text in transcribed
Dana owns a food truck and has introduced a new type of healthy smoothie. In the first month she sokd each cup for 8D350 and has managed to sell 1,100 cups. The variable cost per cup is BD 1.25 and the foxed costs per month are BD 1,250 . In the second month Dana has decided to increase the selling price per cup by 20%. However, this increase in the selling price led to a 35% 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 20% ? Why? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)

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

Monthly Bank Reconciliation Statement Log

Authors: Elizabeth S.R.M. Cole

1st Edition

1541036824, 978-1541036826

More Books

Students also viewed these Accounting questions

Question

Are members flexible in their roles to accommodate team goals?

Answered: 1 week ago

Question

Explain Synchronization in Distributed Web-based systems.

Answered: 1 week ago

Question

write about your research methods.

Answered: 1 week ago