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To compete with the global coffee giant Starbucks, a local caf is planning to launch a new beverage, Coke-latte, next week. They plan to sell
To compete with the global coffee giant Starbucks, a local caf is planning to launch a new beverage, Coke-latte, next week. They plan to sell both iced and hot versions of Coke-latte. Based on their market survey conducted a month ago, they believe they can charge $6 per cup of iced Coke-latte and $5 per cup of hot Coke-latte. The variable cost to produce each cup of both hot and iced Coke-latte is $2.5. While they believe their new beverage can satisfy their customers' diverse tastes in coffee, its demand is highly uncertain. Fortunately, they had the opportunity to survey their current customers about the taste of their new beverage and expect to sell at least 400 cups of iced Coke-latte and 200 cups of hot Coke-latte next week. Therefore, they are committed to producing 400 cups of iced Coke-latte and 200 cups of hot Coke-latte. However, the local caf wants to develop a spreadsheet model with which they can experiment with their profit under different prices. By answering the following sub-questions, please develop a spreadsheet model for the caf. (20 pts)
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