What equation can be designed

Assignment Help Finance Basics
Reference no: EM133001523

Carl is running his newly established business - a coffee shop. During the first month of operation, he observed that each cup of coffee requires:

1.  150 millilitre of water

2.  A table spoon of coffee

3.  One-half cup of milk

4.  A paper cup

5.  A stirrer straw

Carl determined that:

a.  One liter of water costs him P 40 plus P 5.00 for the delivery charge

b.  A pack of 1-kilogram coffee from Baguio would make 150 table spoons, and each pack costs P 2,250.

c.  A can of special milk, which costs P 110, would make 2.5 cups.

d.  A pack of paper cups, which contains 40 cups, costs P 85.

e.  A pack of stirrer straws costs P 50 with 80 straws per pack.

GUIDE QUESTIONS:

1.  How much is the total costs per cup of coffee?

2.  If Carl expects a profit of 30% of the cost per cup:

1.What equation can be designed?

2.How much should be the selling price per cup?

3.How much would he profit if he sells 100 cups?

3.  If Carl expects a profit of 30% of the price per cup:

a.What equation can be designed?

b.How much should be the selling price per cup?

c.How much would he profit if he sells 100 cups

Reference no: EM133001523

Questions Cloud

Prepare the journal entry to account for any impairment : Pete Limited acquired Samson Limited on 1 July 20X7 for cash of $3,500,000. Prepare the journal entry to account for any impairment of goodwill
Calculate the profit or loss on the sale : In year 1, Expert Chemicals purchased a forklift truck for $300 ooo, and at the end of year 3 sold it for $55 530. Calculate the profit or loss on the sale
Prepare general journal entries to record transactions : Prepare General Journal entries to record the following periodic system merchandising transactions for Safety Merchandising
Prepare the appropriate journal entry to account : The remainder will not be ready for shipment until January of the following year. Prepare the appropriate journal entry to account for DTC July 31, 2012
What equation can be designed : Carl is running his newly established business - a coffee shop. During the first month of operation, he observed that each cup of coffee requires:
What is variance analysis and how is it used : Question - Operating Budgets - How does an operating budget work to discipline a firm's management? What is "Variance Analysis" and how is it used
What is the profit calculated using variable costing : Scomo Ltd makes a profit of $100,000, calculated under absorption costing. What is the profit calculated using variable costing
Calculate the equivalent units of direct materials : Using the weighted average method of process costing, calculate the equivalent units of direct materials and conversion costs for the month of May
What is the present value of these cash flows : Wilkinson Co. has identified an investment project with the following cash flows: What is the present value of these cash flows

Reviews

Write a Review

Finance Basics Questions & Answers

  How much must he increase each years savings to reach goal

40 years old, retire at age 60, want $25000 per year for 25 years after retiring begining on 60th birthday, can save 1000 per year for next 10 years then 1500.

  Financial instruments and financial markets

In the context of the Australian financial system explain the role of each of the major regulators (the RBA, APRA, ACCC, and ASIC)

  Calculation of after-tax cost of debt and cost of equity

Calculation of After-Tax Cost of Debt and Cost of Preferred Stock and Cost of Equity and WACC under CAPM

  What is value of a share of gamma corporation common stock

What is the value of a share of Gamma Corporation common stock to an investor who requires a 20 percent return on her investment?

  Expand on your answer by incorporating real life events

Why may a bond's rate of maturity differ from its yield to maturity? Expand on your answer by incorporating real life events.

  How much of asset abc return was idiosyncratic

Asset ABC has a beta of 0.79, and the risk-free rate is 1.09%. Suppose that the ex-ante form of the CAPM predicted an expected return of 9.75%

  Calculate the amount for her and explain the account

Annie's mortgage statement shows a total payment of $699.12 with $604.60 paid toward principal and interest and $94.52 paid for taxes and insurance. Taxes and insurance for 3 months were collected at closing. Now after 6 months of payments, she..

  What is the impact over the next two years on net interest

Assuming the bank does not change the composition of its balance sheet, calculate the net interest income for the bank before and after the interest rate changes. What is the resulting change in net interest income?

  What is the beta of stock b

Currently, the risk-free rate is 4 percent. Stock A has an expected return of 13 percent and a beta of 1.2. Stock B has an expected return of 9 percent. The stocks have equal reward-to-risk ratios. What is the beta of stock B?

  To what extent are anxiety and powerlessness correlated

To what extent are anxiety and powerlessness correlated? Is there a causal relationship between the two?

  Find the size of the quarterly payment

A couplebuy a house listed at $180,000 with a $30,000 down payment and amortized the rest of the debt with a quarterly payments made at the end of the quarter.

  Period of time to earn a specific rate of return

Which is a savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return?

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