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The marketing department of Central Perk Coffees estimates the following monthly demand for high-test dark roast coffee in these four price-quantity relationships: Demand 1 9,500
The marketing department of Central Perk Coffees estimates the following monthly demand for high-test dark roast coffee in these four price-quantity relationships: Demand 1 9,500 cups at $1.05 per cup 2 8,200 cups at $1.30 per cup 3 5,500 cups at $1.55 per cup 4 4,400 cups at $1.80 per cup The fixed costs of 2,700 per month are not affected by the different price-volume alternatives. Variable costs are $0.25 per cup. What price should Central Perk Coffees set for this coffee. $1.55 1 23 4 Sales 1.05 X 1.3 X 1.55 X 1.8 X Variable Costs Contribution Margin 4875 X 7050 X 8875 x 11100 X 14625 X 21150 X 26625 33300 x X
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