1. Business
  2. Accounting
  3. the new selling price question a the reduction is petrol...

Question: the new selling price question a the reduction is petrol...

Question details

THE NEW selling PRICE

Question

a) 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?

ANS:

New selling prices:

Item

Kuala Lumpur

Seremban

Klang

Cappucino

8.9-(8.9 * 1.8%)

=8.74

6.675-(6.675*1.8%)

=6.55

7.42-(7.42*1.8%)

=7.29

Latte

9.9-(9.9*1.8%)

=9.72

7.425-(7.425*1.8%)

=7.29

8.25-(8.25*1.8%)

=8.10

Question:

b) 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?

ANS:

New selling price from the original prices in Kuala Lumpur :

Cappucino =8.9+(8.9*2.5%)=9.12

Latte =9.9+(9.9*2.5%)=10.15

Based on the above prices in Seremban and Klang also changes:

Items

Seremban

Klang

Cappucino

9.12-(9.12*25%)

=6.84

9.12/120*100

=7.6

Latte

10.15-(10.15*25%)

=7.61

10.15/120*100

=8.46

THOSE ABOVE QUESTION WERE already answered

DOWN BELOW I NEED THE SOLUTION

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

City

Total

Kuala Lumpur

Klang

Seremban

Cappuccino

160

90

200

450

Latte

120

240

70

430

Total

280

330

270

880

  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

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution