Please use exact same spreadsheet format.

Ch 10 Homework Problem B (pricing) Pick-Me-Up Company is introducing a and must decide what price to set for the coffee beans. An estimated demand schedule for the product follows: new coffee in its stores Price One-pound units 80,000 $ 5 72,000 6 56,000 48,000 36,000 30,000 7 9 10 Estimated costs follow: Variable manufacturing costs $2 per unit Fixed manufacturing costs $40,000 per year Variable selling and administrative costs $1 per unit Fixed selling and administrative costs $20,000 per year a. Prepare a schedule showing management the total revenue, total cost, and total profit or loss for each selling price. Which price do you recommend to the management of Pick-Me-Up? Explain your answer. b. Problem C (special offer) Ocean View Company operates tour boats. Its predicted operations for the year are as follows: Sales (1,000 tours per year) $400,000 Costs: Variable $250 per tour Fixed $100,000 per year The company has received a request to offer 100 tours for $300 cach. Ocean View has plenty of capacity to do these tours in addition to its regular business. Doing these tours would not affect the company's regular sales or its fixed costs. a. Should the company do the special b. What is the effect of the decision on the company's operating profit? tours for $300 per tour? A D F Problem B 4 5 6 Demand (units) Price 7 $5 80,000 $6 72,000 $7 56,000 10 $8 48,000 11 $9 36,000 12 $10 30,000 13 14 Decision: 15 16 17 Problem C 18 19 20 21 22 23 24 25 26 27 Decision: 28