Specialty Coffees is considering raising the price it charges for espresso. The company currently sells 1,800 cups per month at $3.25 each. The marketing department estimates that increasing the price to $4.00 will reduce monthly sales to 1,200 cups. The companys monthly fixed costs are $2,000. Variable costs are $1.00 per cup. Use this information to answer questions 9-11.

9. Based on the estimates provided by the marketing department, what total amount of contribution margin can Specialty Coffees expect to earn from the sale of an expresso if the price is increased to $4.00 a cup?

A. $4,050

B. $2,600

C. $2,800

D. $3,600

10. Based on the estimates provided by the marketing department, what total amount of contribution margin can Specialty Coffees expect to earn from the sale of an expresso if the price remains at $3.25 a cup?

A. $4,050

B. $2,600

C. $2,800

D. $3,600

11. Which selling price will maximize Specialty Coffees contribution margin?

a. $3.25

b. $4.00

c. The choices produce the identical results