Cafe x is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Increased Price for Small Coffee Cafe X is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small to $2.75, and they project that sales of smalls will go down while sales of mediums and larges will go up slightly. Fill out the tables below to calculate the projected change in gross margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Price per Cup Cost per Cup Small $2.50 50.20 2,500 Medium $3.50 50.35 1,400 Large $4.50 50 50 700 Total Increased Price for Small Coffee Cups Sold Revenue Price per Cup Cost per Cup Est. Change in Cups Sold with Small $2.75 Cups Sold Small $2.75 $0.20 10% Medium $3.50 $0.35 .6% Large $4.50 $0.50 +3% Total O 5 0 $ 0 $0 Revenue COGS $ 0 4. AT 4. COGS Gross Margin S 5 $ 5 0 0 S $ S 0 4 Gross Margin F
Cafe x is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Increased Price for Small Coffee Cafe X is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small to $2.75, and they project that sales of smalls will go down while sales of mediums and larges will go up slightly. Fill out the tables below to calculate the projected change in gross margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Price per Cup Cost per Cup Small $2.50 50.20 2,500 Medium $3.50 50.35 1,400 Large $4.50 50 50 700 Total Increased Price for Small Coffee Cups Sold Revenue Price per Cup Cost per Cup Est. Change in Cups Sold with Small $2.75 Cups Sold Small $2.75 $0.20 10% Medium $3.50 $0.35 .6% Large $4.50 $0.50 +3% Total O 5 0 $ 0 $0 Revenue COGS $ 0 4. AT 4. COGS Gross Margin S 5 $ 5 0 0 S $ S 0 4 Gross Margin F
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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Transcribed Image Text:Cafe x is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the
second table, they are considering raising the price of their small margin based on the estimated changes in cups sold.
You may find it helpful to use a spreadsheet for the calculations. Current Prices Increased Price for Small Coffee
Cafe X is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small
to $2.75, and they project that sales of smalls will go down while sales of mediums and larges will go up slightly. Fill out the tables below to calculate the projected change in gross
margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations.
Current Prices
Price per Cup
Cost per Cup
Cups Sold
Small
$2.50
50.20
2,500
Medium
$3.50
50.35
1,400
$0
Revenue
$ 0
$ 0
Large
$4.50
50.50
700
0
$ 0
Total
$ 0
Increased Price for Small Coffee
Price per
Cup
Cost per
Cup
Est. Change in Cups Sold with
Small $2.75
Cups Sold
Small
$2.75
$0.20
-10%
Medium
$3.50
$0.35
16%
Large
$4.50
$0.50
+3%
Total
0
5
0
Revenue
COGS
Gross Margin
$
0
COGS
5
$
5
о
0
0
$
o
0
0
Gross Margin
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