Question 2. The marketing manager for Tim Hortons is attempting to price a cup of coffee. She knows that the cost of the coffee is $0.14 per cup, and expenses are 30% of the regular selling price. She would like the coffee to achieve an 88.24% markup on selling price. a) What is the regular selling price for a cup of coffee? b) What is the profit per cup? c) What is the markup on cost percentage?

Question 2. The marketing manager for Tim Hortons is attempting to price a cup of coffee. She knows that the cost of the coffee is $0.14 per cup, and expenses are 30% of the regular selling price. She would like the coffee to achieve an 88.24% markup on selling price. a) What is the regular selling price for a cup of coffee? b) What is the profit per cup? c) What is the markup on cost percentage?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4: Preparing And Using Financial Statements

Section: Chapter Questions

Problem 1fM

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please show all work and preferably on paper Question 2. The marketing manager for Tim Hortons is attempting to price a cup of coffee. She knows that the cost of the coffee is $0.14 per cup, and expenses are 30% of the regular selling price. She would like the coffee to achieve an 88.24% markup on selling price.a) What is the regular selling price for a cup of coffee?b) What is the profit per cup?c) What is the markup on cost percentage?
1. A beverage stand can sell either soft drinks or coffee on a given day. If the stand sells soft drinks and the weather is hot, it will make P2,500; if the weather is cold, the profit will be P1,000. If the stand sells coffee and the weather is hot, it will make P1,900; if the weather is cold, the profit will be P2,000. The probability of cold weather on a given day at this time is 60%. The expected payoff for selling coffee is? (Show solution and formula) a. P1,960 b. P3,900 c. P1,360 d. P2,200 2. When Blossom Corporation's sales increased by 10%, its profit increased from P250,000 to P350,000. What is Blossom's degree of operating leverage? 3. Sunshine Company mines three products. Gold Ore sells for P1,000,000 per ton, variable costs are P600,000 per ton, and fixed mining costs are P6,000,000. The segment margin for 2019 was P1,200,000. The management of Sunshine Company was considering dropping the mining of Gold Ore. Only one-half of…
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Assume that you are in charge of pricing for a firm that produces pickles. You have fixed costs of $2,000,000. Variable costs are $0.75 per jar of pickles. You are selling your product to retailers for $0.89. You sell the pickles in cases of 24 jars per case. a. How many jars of pickles must you sell to break even? b. How much must you sell in dollars to break even? c. How many jars of pickles must you sell to break even plus make a profit of $300,000? d. Assume a retailer buys your product for $0.89. His business requires that he prices products with a 35 percent markup on cost. Calculate his selling price. e. Assume you have an MSRP of $1.39 for the pickles. If a retailer has a required 35 percent retailer margin on all products he sells, what is the most he is willing to pay the producer for the pickles? f. A clothing retailer knows that to break even and make a profit he needs to have a minimum retailer margin (also referred to as a contribution margin or gross margin) of at least…
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Mortlake Bottlers wants to sell a new flavor of bottled tea. Per 16 ounce bottle there are the following estimated costs: glass bottles 50 cents, brewed tea 65 cents, labels and bottling process $1.20, and distribution costs 85 cents. The company desires to make a profit equal to 10% of total costs. Competitors sell similar products for $3.25/16 ounce bottle and competition is fierce and very price competitive. a. What is the target cost, target profit, and selling price? b. Should the company proceed? If not, then why, and what could be done to change your answer?
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The Teacup Express has computed its fixed costs to be $.27 for every cup of tea it sells given annual sales of 739,000 cups. The sales price is $.99 per cup while the variable cost per cup is $.12. How many cups of tea must it sell to break even on a cash basis? Multiple choice:. 146,472 167,630 251,910 229,345 184,806
1. A company had been selling 250 units per week of a product at a price of $20. When the company decreased the item’s price to $16, sales increased to 330 units per week. Calculate the price elasticity that represents the market’s response to this price change. Show your solution. 2. Explain how a brand of a commonly purchased consumer packaged goods such as toilet tissue, could be skim-priced.
Please I need help with the letters D and E, A, B, and C that are already answered. Question 5 Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs per baby hamper of $100. The company’s monthly fixed expenses are $200,000. Required: a) What is the company’s break-even point in units? b) What is the company’s margin of safety in dollars, assume sales is expected to be $800,000? c) How many baby hampers will Micol & Co. Ltd need to sell (in sales dollars) in order to realize a target profit of $500,000? d) Construct a contribution margin income statement for the first month (in July) that reflects $2,400,000 in sales revenue for Micol & Co. Ltd. e) Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months? Please show your working (All Steps).