In your first week of operating the caf$,$ you only expect to sell $320$ medium cups of coffee daily, Monday through Friday. You plan to sell the specialty ciffee for $$3\mathrm{.}40$ each. You know your variable costs $($coffee$,$ cups, milk, etc.$)$ average $$0\mathrm{.}60$ per cup and weekly fixed expenses $($rent$,$ wages$)$ are $$5,700.$

$2.$If Sample Caf$$ only sells medium size coffee at $$4\mathrm{.}00$ per cup, how many did they sell in January? $($assume $4$ weeks of identical sales$)$

$3.$ What is the Gross Margin $\%$ for the Sample Caf$$

$4.$ For each cup of coffee sold, what is the average contribution margin?

Answer rating: 100% (QA)

ANSWER Lets address each question step by step Expected Sales in the First Week Daily Sales 320 medi... View the full answer