The marketing department of specialty coffees estimates

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Reference no: EM131123176

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

Demand

9,000 cups at $1.00 per cup
8,000 cups at $1.25 per cup
6,000 cups at $1.50 per cup
4,400 cups at $1.75 per cup

The fixed costs of USD 3,000 per month are not affected by the different price-volume alternatives. Variable costs are USD 0.25 per cup. What price should Specialty Coffees set for espresso?

Reference no: EM131123176

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