LG Home - LookingGlass x Question 7 - Chapter 5 Homewor X + V X -> C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEP... Tax and Wage System.. Monstaliner do-it-y... ww Waste Management Login - Time Clock MyPima FleetLocate DES Emergency Re.. * Schedule of Classes... Verizon Business Ac... M Gmail Maps D2L SCHOOOOL Chapter 5 Homework i Saved Help Save & Exit Submit Check my work 7 E5-19 (Algo) Predicting How Sustainability Initiatives Will Impact the Contribution Margin Income Statement [LO 5-5] 3 Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup. points During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would receive a 20 percent discount each time they return with the cup to buy a cup of coffee. eBook Each week Starcups serves 53,000 customers, who purchase an average of 2.50 cups of coffee per week (132,500 cups total). Starcups's contribution margin income statement for a typical week is shown below: Hint Units Per Unit Total Print Sales Revenue 132, 500 $ 6.60 $ 874, 500 References Variable Costs 132, 500 2.80 000'TLE Contribution Margin 132, 500 $ 3.80 $ 503, 500 Fixed Costs 113, 000 Net Operating Income $ 390, 500 Assume the new cup promotion is expected to impact sales volume, revenue, fixed, and variable costs as follows: . Starcups estimates that 25 percent of its current customers (13,250) will participate in the promotion. The remainder of its existing customer base (39,750) will continue to buy an average of 2.50 cups of coffee per week. Starcups expects to attract 6,300 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 20 percent discount on repeat visits when they bring back their reusable cup. The additional variable cost of purchasing the reusable cup is $3.30. The variable cost savings of the paper cup is $0.30. . Starcups expects that customers who participate in the reusable cup promotion will visit an average of 4 times per week, including the first purchase of the reusable cup. . Starcups will spend a total of $23,000 per week advertising the reusable cup promotion. DamuirAN. Mc Graw Hill 78.F sunny W 10:33 AM 10/5/2022 3LG Home - LookingGlass x Question 7 - Chapter 5 Homewor X + V X -> C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEP... Tax and Wage System.. Monstaliner do-it-y... ww Waste Management Login - Time Clock MyPima FleetLocate DES Emergency Re. * Schedule of Classes... Verizon Business Ac... M Gmail Maps D2L SCHOOOOL Chapter 5 Homework i Saved Help Save & Exit Submit Check my work 7 Required 1 Required 2 Required 3 Prepare a contribution margin income statement to predict how the reusable cup promotion will impact weekly net operating 3 income. points Note: Round your per unit answers to 2 decimal places" at indicated place. Units Per Unit Total eBook Customers who do not participate: Hint Sales revenue S o O Variable costs S Print Contribution margin S 0 References First purchase for customers to buy the reusable cup: Sales revenue 0 Variable costs o O Contribution margin Repeat visits for customers who buy the reusable cup: Sales revenue Variable costs o o o Contribution margin Mc Graw Hill 78.F O W 10:34 AM 3 sunny 10/5/2022LG Home - LookingGlass x Question 7 - Chapter 5 Homewor X + V X -> C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEP... Tax and Wage System.. Monstaliner do-it-y... ww Waste Management Login - Time Clock MyPima FleetLocate DES Emergency Re.. * Schedule of Classes... Verizon Business Ac... M Gmail Maps D2L SCHOOOOL Chapter 5 Homework i Saved Help Save & Exit Submit Check my work 7 before and after the promotion. 3. How will this sustainability initiative impact the company's triple bottom line? Complete this question by entering your answers in the tabs below. 3 points Required 1 Required 2 Required 3 eBook Hint Compute the difference in total revenue, total variable costs, total contribution margin, total fixed costs, and total operating income before and after the promotion. Print Difference References Sales revenue Variable costs Contribution margin Fixed costs Net operating income Mc Graw Hill 78.F sunny O W 10:34 AM 10/5/2022 3LG Home - LookingGlass x Question 7 - Chapter 5 Homewor X + V X -> C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEP... Tax and Wage System.. Monstaliner do-it-y... ww Waste Management Login - Time Clock MyPima FleetLocate DES Emergency Re.. * Schedule of Classes... Verizon Business Ac... M Gmail Maps D2L SCHOOOOL Chapter 5 Homework i Saved Help Save & Exit Submit Check my work 7 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 3 before and after the promotion. points 3. How will this sustainability initiative impact the company's triple bottom line? eBook Complete this question by entering your answers in the tabs below. Hint Print Required 1 Required 2 Required 3 References How will this sustainability initiative impact the company's triple bottom line? How will this sustainability initiative impact the company's triple bottom line? Mc Graw Hill 78.F sunny O W 10:34 AM 10/5/2022 3