This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 3 (i) What is the outlet’s optimum daily quantity to produce in 2007 ? ( ii ) If the monthly fixed cost is $20,000 ( assume 30 days in a month) what is the monthly net return per outlet to Starbucks when coffee sells for $5.56/cup. (iii) If due to competition and the economy, the selling price of a cup of coffee drops to $3.25 in 2010, what is the outlet’s optimum daily quantity to produce in 2010 ?...
View Full Document
This note was uploaded on 10/25/2010 for the course ARE 100A taught by Professor Constantine during the Winter '08 term at UC Davis.
- Winter '08