Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would recelve a 20 percent discount each time they return with the cup to buy a cup of coffee Each week Starcups serves 53,000 customers, who purchase an avecage 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: Assume the new cup promotion is expected to mpact sales volume, revenue. fixed, and variable costs as follows: - Starcups estimates that 25 percent of its current customers (33.250) will paricipate in the promotion. The remainder of its existing customer base (39.750) wil 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 promption. - Customers who parficipate 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 $330 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 wil spend a total of $23,000 per week advertising the reusable cup promotion. 2. Compute the difference in total revenue, total variable costs, total contribution margin, total fixed costs, anu tuar income. 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. Prepare a contribution margin income statement to predict how the reusable cup promotion will impact weekly net operating Hote: Round your per unit answers to 2 decimal places' at indicated place. income. 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 recelve a - The additional variable cost of purchasing the reusable cup is $3.30. The variable cost savings of the paper cup is $0.30. 20 percent discount on repeat visits when they bring back their reusable cup - 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. 1. Prepare a contribution margin income statement to predict how the reusable cup promotion will impact weekly net operating Required: 2. Compute the difference in total revenue, total variable costs, total contribution margin, total fixed costs, and total operating income income. before and after the promotion 3. How will this sustainabitity initiative impact the company's triple bottom line? Complete this question by entering your answers in the tabs below. Compute the difference in total revenue, total variable costs, total contribution margin, total fixed costs, and total operating Income before and alter the promotion. 1. Prepare a contribution margin income staternent to predict how the reusable cup promotion will impact weeldy net operating income 2 Compute the diflerence in rotal revenue, fotal vanable costs, total contribidion margin, total foxed costs, and total operating income before and after the promotion 3. How will this sustainablity initative impact the companys tiple bottom line? Complete this question by entering your answers in the tabs below. How wat this sustainatility instiative impact the companyy triphn toottom linen
