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Rudik [331]
3 years ago
10

Exercise C The marketing department of Specialty Coffees estimates the following monthly demand for espresso in these four price

-quantity relationships: Demand 1 9,000 cups at $1.00 per cup 2 8,000 cups at $1.25 per cup 3 6,000 cups at $1.50 per cup 4 4,000 cups at $1.75 per cup The fixed costs of $3,000 per month are not affected by the different price-volume alternatives. Variable costs are $0.25 per cup. What price should Specialty Coffees set for espresso
Business
1 answer:
SIZIF [17.4K]3 years ago
6 0

Answer:

It should price the espresso at $1.25

Explanation:

\left[\begin{array}{ccccc}&D1&D2&D3&D4\\$Sales Price&1&1.25&1.5&1.75\\$Variable Cost&0.25&0.25&0.25&0.25\\$Margin&0.75&1&1.25&1.5\\$Quantity&9,000&8,000&6,000&4,000\\$Contribution&6,750&8,000&7500&6,000\\$Fixed Cost&3,000&3,000&3,000&3,000\\$Income&3,750&5,000&4,500&3,000\\\end{array}\right]

The best Income is generated at the price of 1.25 dollar

Therefore, this is the amount to Specialty Coffees set for espresso.

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In what situations is top-down planning likely to be superior to bottom-up emergent strategy development
Marianna [84]

Answer is given below :

Explanation:

  • Both strategies aim to convey and process knowledge between and within the organization. The top-down approach for sub-categories to gain insights at the senior management level breaks down a system.
  • This is a great tool to help managers identify areas of improvement using quota and monthly matrix goals. There are flaws in this strategy, employees are not involved in the process and managers do not understand the full impact of the changes made.
  • Morality can be affected because this strategy is motivated by fear and encouragement. The bottom line is that in some cases it is more complex, although employees feel motivated to provide more authority and quality work. The information is processed to a minimum and communicated to management.
  • This may help in some areas because administrators may not fully understand the process. I should use the military as an example for a top down strategy.
  • It works on the battlefield when there is no time to discuss or motivate employees. Top down is used when there is a slight change in environmental factors.
5 0
3 years ago
Maurice can drive or fly from Jacksonville, Florida to Atlanda, Georgia, for a one-day business trip. If he drives, he will be a
ArbitrLikvidat [17]

Answer:

c. $150.

Explanation:

the extra amount of hours Maurice can work taking a flight will be of 5 hours

(8 hours taking a plane against 3 hours if driving)

As the income per hour is 30 dollar it can generate;

5 hours x $30 per hour = $150

Maurice will only travel by plane if it generates the same or more income than the driving thus, a differencial price of less than 150 dollars will provide Maurice with a net gain. Also we should consider that if Maurice drives his car it is taking a depreication hit per mile while driving that is being ignoer to keep the assignment simple. But considering that the amount of differential income could be higher than $150

8 0
3 years ago
Heath Food Corporation’s bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity
joja [24]

Answer:

8.55%

Explanation:

For computing the current yield first we have to determine the present value by applying the present value formula which is shown below:

Given that,  

Future value = $1,000

Rate of interest = 8%

NPER = 7 years

PMT = $1,000 × 9% = $90

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

After solving this, the present value is $1,052.06

Now the current yield is

= PMT ÷ PV

= $90 ÷ $1,052.06

= 8.55%

3 0
3 years ago
An organization that collects and distributes money to candidates is known as a(n)_______.
MA_775_DIABLO [31]

Answer:

political action committee

Explanation:

A political action committee is an organization set up by a political party to gather funds through the contribution and donation from members of the party. The funds collected by the political action committee are used to support the party candidate or campaign against the opposition party candidate. The political action committee is not obligated by law to disclose the identities of donors.

5 0
3 years ago
When Mayo Clinic conducted its analysis during the 1980s, what two segments of the general environment did it initially focus on
Georgia [21]

Answer: a. Demographic and Economic .

Explanation:

In Mayor's clinic analysis of the future, it was stated that both the economic and demographic trends looked bleak.

6 0
3 years ago
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