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QUESTION 3 [ 1 3 MARKS ] You are the manager of a newly established coffee shop in Gaborone called Gabz Coffee Mart.The shop sells
QUESTION MARKSYou are the manager of a newly established coffee shop in Gaborone called Gabz Coffee Mart.The shop sells specialty coffee drinks, pastries, and sandwiches. It has fixed costs rent salaries,utilities of per month. The variable cost per coffee drink including coffee beans, milk,and cups is P and the selling price per coffee drink is PRequireda Explain the importance of breakeven analysis for Gabz Coffee Marts decisionmakingprocess. marksb Calculate the number of coffee drinks Gabz Coffee Mart needs to sell to reach the breakevenpoint. marksc How many units of coffee should the shop sell to realize a profit of P marksd Calculate the new breakeven quantity if fixed costs increased to P while selling priceincreased by and variable cost increased by marks
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