The marketing department of Specialty Coffees estimates the following monthly demand for espresso in these...
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Accounting
The marketing department of Specialty Coffees estimates the following monthly demand for espresso in these four price-quantity relationships: Demand 1 9,000 cups at $1.00 per cup 2 8,000 cups at $1.25 per cup 3 6,000 cups at $1.50 per cup 4 4,000 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?
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