Question

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

Answer 1

Ans 1

SINCE PRICE OF CAPACCINO IN KLANG IS RM7.5, LATTE IS RM 8.9

GIVEN PRICES IN SEREMBAN IS 10% LESS THAN KLANG HENCE PRICES IN SEREMBAN ARE

CAPPACCINO = 7.5*90% = 6.75

LATTE = 8.9*90% = 8.01

GIVEN PRICES IN KUALA LAMPUR IS 20% GREATER THAN THE PRICES IN SEREMBAN HENCE PRICES IN KUALA LAMPUR are

CAPPACCINO = 6.75*120% = 8.1

LATTE = 8.01*120% = 9.612

Ans 2

If the prices as per the Q1 then the answer is as follows

City	Kuala Lumpur			Klang			Seremban
	price	cost	Profit / (Loss)	price	cost	Profit / (Loss)	price	cost	Profit / (Loss)
CAPPACINO	8.74	8.1	0.64	7.29	7.5	-0.21	6.55	6.75	-0.2
LATTE	9.72	9.612	0.108	8.1	8.9	-0.8	7.29	8.01	-0.72
City	Kuala Lumpur			Klang			Seremban

If the prices as per the Q2 then the answer is as follows

City	Kuala Lumpur			Klang			Seremban
	price	cost	Profit / (Loss)	price	cost	Profit / (Loss)	price	cost	Profit / (Loss)
CAPPACINO	9.12	8.1	1.02	7.6	7.5	0.1	6.84	6.75	0.09
LATTE	10.15	9.612	0.538	8.46	8.9	-0.44	7.61	8.01	-0.4

as mentioned above the answer is self expressive and shows that the company would make loss if the rates are as above

ANS 3

If i took over the company, selling price to be set considering the cost, the new minimum wage and petrol prices are as follows

	Kuala Lumpur	Klang	Seremban
CAPPACINO	9.12	7.6	6.84
LATTE	10.15	8.9	8.01