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The marketing department of Starbucks estimates the following monthly demand for espresso in the four price- quantity relationships: (2 points) 2 Demand: 1 10,000 cups

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The marketing department of Starbucks estimates the following monthly demand for espresso in the four price- quantity relationships: (2 points) 2 Demand: 1 10,000 cups at $1.50 per cup 9 ,000 cups at $1.75 per cup 3 8,000 cups at $1.00 per cup 4 7,000 cups at $1.25 per cup Fixed cost of $2,500 per month are not affected by the different price-volume alternative. Variable costs $.30 per cup. What price should Starbucks set for espresso? (2points)

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