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Exercise C The marketing department of Specialty Coffees estimates the following monthly demand for espresso in these four pr
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Answer #1

Computation of Profit  

1 $ 2 $ 3 $ 4 $

Sales

Less: Variable Cost

9,000

2,250

10,000

2,000

9,000

1,500

7,000

1,000

Contribution

Less: Fixed Cost:

6,750

3,000

8,000

3,000

8,500

3,000

6,000

3,000

Profit 3,750 5,000 5,500 3,000

The third option of selling price at 6,000 cups at $1.50 is profitable than other options.

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