How many cups under each scenario must sell

Assignment Help Financial Accounting
Reference no: EM132523080

Point 1: Doc Jones owns Doc's coffee shop, and his accountant has told him that his total fixed costs to run his business in a very nice upscale business-oriented neighborhood, excluding his salary, are $15,000 per month. Doc is in competition with a Seattle's coffee shop just down the block. Consequently, his prices are about the same as theirs. He has calculated that the average cup of coffee cost him $1.87 cents, which includes the coffee, the cup and condiments, such as sugar, sweetener, creams, napkins, and stir sticks.

Point 2: His average selling price is $4.85 per cup. He currently sells 8,000 cups of coffee per month. Doc has figured that if he lowers his price by $1.00 per cup, he would increase his sales to 11,000 cups per month and make more money. Doc wants to earn $4,000 monthly salary.

Question 1: Approximately how many cups under each scenario must he sell?

Reference no: EM132523080

Questions Cloud

Determine the cost per equivalent unit of conversion : Dorchester uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion
Explain what psychological and behavioral factors : Explain what psychological and behavioral factors play a role in those ‘homegrown' individuals becoming radicalized and conducting terrorist attacks
Determine the standard overhead rate : Virginia Bay Corporation recorded $275,000 of costs related to factory overhead. Use this information to determine the standard overhead rate
Identify one or two areas of public administration : Identify one or two areas of public administration you think will have the greatest effect on the United States in the next five years.
How many cups under each scenario must sell : 11,000 cups per month and make more money. Doc wants to earn $4,000 monthly salary. Approximately how many cups under each scenario must he sell?
Traditional and behavioral : How do the traditional and behavioral schools define the purpose of political science? What are some of their flaws in approaching the discipline?
Compute Home Depots debt ratio : Home Depot reported the following: Total liabilities = $38,633 million and Total assets = $42,966 million. Compute Home Depot's debt ratio
Identifies the specific organization : Be sure your response clearly identifies the specific organization, bureau, or responsible for performing the associated collection.
Calculate the average unit cost : In its first month of operations, Larkspur, Inc. made three purchases of merchandise in the sequence: (1) 180 units at $7, Calculate the average unit cost

Reviews

Write a Review

Financial Accounting Questions & Answers

  What amount should the acquired computer be recorded

Hardin Company received $80,000 in cash and a used computer with a fair value of $240,000 from Page Corporation for Hardin Company's existing computer having a fair value of $320,000 and an undepreciated cost of $300,000 recorded on its books.

  Determine the guiding accounting rule that helps ascertain

Determine the guiding accounting rule that helps ascertain which costs are capitalized in connection with property and equipment and which are expensed.

  What is the balance of the fund at the end

The fund pays interest at 5% compounded annually. What is the balance of the fund at the end of 2010 (after the 2010 deposit)? Show your work.

  Compute the bond interest expense for the first six months

Compute the bond interest expense for the first six months of 2012, using the interest method. Show how the $1,400,605 price must have been determined.

  Compute current ratio quick ratio and receivables turnover

Compute the current ratio, quick ratio, receivables turnover, days' sales uncollected, inventory turnover, days' inventory on hand, payables turnover, days' payable for each year, and financing period.

  Net income and amount of cash flow from operating activities

How each of the following events or series of events and the related adjusting entry will affect the amount of net income and the amount of cash flow from operating activities reported on the year-end financial statements. Identify the direction of c..

  Barrel of oil equivalents in the financial statements

1.Gas production and reserves are always converted to Barrel of Oil equivalents in the financial statements.

  Journalize and post the adjusting entries

Journalize and post the adjusting entries. Journalize and post the closing entries. Prepare a post-closing trial balance at January 31, 2017.

  Why do you think home depot is paying out

If you were an investor in Home Depot ’ s stock, would you be unhappy because your dividends represented such a small percentage of the company’s net income? Why do you think Home Depot is paying out?

  What amount was transferred to finished goods

During 2013, Durham Manufacturing expected Job No. 51 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Durham applied overhead based on direct labor cost. Actual production required an overhead cost of $290,000, $550,000 in..

  Illustrate the advantages and disadvantages of using

What are the problems associated with dependence on human information processing and paper documentation? Explain your response. Illustrate the advantages and disadvantages of using real-time versus batch accounting information architecture?

  This week you will be starting work on your final project

this week you will be starting work on your final project for this module. the purpose of the final project is to apply

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd