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In accordance with our conversation, the company plans to sell a new bundled product to corporate customers. The product bundle consists of our three traditional
In accordance with our conversation, the company plans to sell a new bundled product to corporate customers. The product bundle consists of our three traditional products: coffee maker, coffee creamer, and coffee beans. Each bundle includes two coffee makers, fifteen bottles of coffee creamer, and thirteen boxes of coffee beans. Fixed costs are $150,000. My team has analyzed the cost structure for the coffee bundle. The following is the result: Coffee Makers Coffee Creamer Coffee Beans Unit selling price $18 $23 $50 Variable cost per unit $8 $15 $46 Our goal for the coffee bundle is to earn $234,000 of operating income. Please let me know if you need additional information
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