Determine the price of a cup

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Reference no: EM1350239

1. A coffee shop has a cost of $.80 per cup of gourmet coffee. They use a mark-up of 200% (based on cost). What price will they charge for a cup of gourmet coffee?

2. A furniture store sells recliners at a 70% mark-up (based on price). If the recliner costs the store $240, what price will they charge?

3. If a price of $250 is charged for a mini-computer, variable costs are $100 per unit, and fixed costs are $600,000, what is the break-even point in units?

4. Following from the information in #3, if we expect to sell 6,000 mini-computers, will that result in a profit? (Yes or No)


Reference no: EM1350239


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