Breakeven point in units=
Fixed cost÷[selling price-variable cost]
Breakeven point in units
=750÷(3.75−1.25)
=300 units
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The flexible budget performance report directs managements attention to areas where corrective action can help control operations. Management uses the report to determine price and quantity variances.
Answer:
A price that is higher and lower quantity of Starbucks coffee
Explanation:
There was only a small decrease in demand for Starbucks coffee, and demand has been greatly decreased.
The demand for Starbucks coffee will remain high, supply will be limited and this will push the price high due to scarcity of the coffee.
