Uncle Qi Wang runs a coffee stall. His daily fixed costs are RM40. His variable costs are RM4 per cup of coffee. Uncle Qi Wang sells an average of 80 cups of coffee per day.

 

REQUIRED:

 

1. 1) What price would Uncle Qi Wang have to charge per cup of coffee in order to generate a profit of RM600 per day
2. 2) What price would Uncle Qi Wang have to charge per cup of coffee in order to generate a total CM of RM600 per day? 
3. 3) Assume that Uncle Qi wang wants to charge RM9.00 per cup of coffee and at this price he can sell 90 cups of coffee daily. What would the variable cost per unit have to be in order to generate a profit of RM500 per day.
4. 4)Assume that the daily fixed costs are RM50 and Uncle Qi wang wants to charge RM10.00 per cup of coffee. What would be the number of cups of coffee have to be sold in order  to generate a profit of RM610 per day.

Answer rating: 100% (QA)

To generate a profit of RM600 per day Uncle Qi Wang would have to charge RM 842 per cup of coffee Th... View the full answer