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Question: question 1 yaavesh expresso sdn bhd the coffee chain yaavesh...

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Question 1

Yaavesh Expresso Sdn. Bhd.

The coffee chain Yaavesh Expresso Sdn Bhd is popular for their cappuccino and Latte made with premium ingredients. The company is interested to know whether there is a difference in coffee preferences between customers in three Malaysian cities.  They conducted a survey of 880 customers and produced the results summarized in the table below:

Preferred Coffee



Kuala Lumpur


















  1. The original selling price of Cappucino and Latte in Kuala Lumpur is RM8.90 and RM 9.90 respectively. The prices differ according to the location. The prices of the Cappucino and Latte in Kuala Lumpur is 20% higher than in Klang, and the prices in Seremban are 25% lesser than Kuala Lumpur.
  1. What are the selling prices in Seremban?
  2. What are the selling prices in Klang?

  1. With the government new rule about the increase in minimum wages and the reduction of petrol prices, the prices of the coffees are forced to change.
  1. The reduction is petrol prices caused a 1.8% reduction to the selling price. What are the new selling prices from the original prices in the 3 locations?
  2. The increase in wages caused a markup of 2.5% in the selling price of the coffees in Kuala Lumpur. What is the new selling price from the original prices?
  3. What would you suggest the new selling prices be if both the increase in wages and decrease in petrol price were to be incorporated?

  1. The cost of the coffee in Seremban is lower than the other locations with the implementation new minimum wages and lowered fuel prices. It is 20% lower than Kuala Lumpur and 10% lower than Klang. The cost of Cappucino and Latte in Klang is RM7.50 and RM 8.90.
  1. What is the cost per price of Latte and Cappucino in the other two location?
  2. With the new selling price and the cost of each coffee in the three location, would the company be at a loss? Why?
  3. If you took over the company, what would you set the selling price to be considering the cost, the new minimum wage and petrol prices?

Do you think the selling price should be standard at all location? Explain what the standard price would you select

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