You are the owner of a small coffee shop called “BeanBuzz,” and you’re facing a critical decision regarding the pricing strategy: Cost And Management Accounting Assignment, MSU, Malaysia

University Management & Science University (MSU)
Subject Cost And Management Accounting Assignment

You are the owner of a small coffee shop called “BeanBuzz,” and you’re facing a critical decision regarding the pricing strategy for your coffee products. The shop offers a variety of coffee options, including regular coffee, lattes, cappuccinos, and specialty drinks. You’ve noticed that your profit margins have been fluctuating recently, and you’re unsure of the best pricing approach to maximize profitability in the short term.

Here’s the current situation:

  •  Your coffee shop has fixed costs such as rent, salaries, and equipment maintenance, totaling $3,000 per month. The variable costs per cup of coffee (coffee beans, milk, cups, etc.) are $1.50.
  • You currently charge $3.50 for a regular coffee, $4.50 for a latte, $5.00 for a cappuccino, and $6.50 for specialty drinks. These prices have been in place for a while.
  • Your monthly sales volume has been inconsistent, but on average, you sell 2,000 cups of regular coffee, 800 lattes, 500 cappuccinos, and 300 specialty drinks.
  • Recently, a new coffee shop opened nearby, offering lower prices, which has started affecting your sales.

    Are You Searching Answer of this Question? Request Malaysian Writers to Write a plagiarism Free Copy for You.

(a) Assess whether your profits are sensitive to changes in sales volume and pricing. What are the implications of this sensitivity?
(You may prefer to show some calculations to justify your explanation, if applicable)

(b) Assess whether you should consider adjusting your coffee prices to compete with the new coffee shop while maintaining or increasing profitability.
(You may prefer to show some calculations to justify your explanation, if applicable)

(c) Discuss the importance of decision makers in the company knowing the different types of cost behaviors in producing the companies’ products.

(d) Discuss the limitations and weaknesses of CVP analysis in this scenario. What other factors or qualitative considerations should be considered when making this decision?

Stuck in Completing this Assignment and feeling stressed ? Take our Private Writing Services.

Get Help By Expert

Facing a crucial decision for your "BeanBuzz" coffee shop in your Cost And Management Accounting assignment at MSU? Get specialized online assignment help and Online Exam Help in Malaysia from our experts. Tailored for MSU students, our services assist with individual assignments, ensuring academic success. Trust us to guide you through complexities and ace your coursework.


Recent Solved Questions

Online Exam & Assignment Writing Services

11770+ Orders Delivered

5 Star Rating

Confidential & Secure Assignment Help For

Group Assignment Help

Online Exam -Test & Quiz

Cheapest Price Quote

Diploma & Certificate Levels

Semester & FYP Papers

Summative & Individual

GBA & Reflective

Last Minute Assistance

Sample Assignment Download

Decision-Making Methods For Sustainable Project Development Assignment Sample Malaysia
Decision-making is the crucial step for the successful development of any project, however, it becomes even more important for sustainable projects. Various methods can be used to make decisions in…
Assignment Sample
BSR551 Built Environment Engineering Services UITM Assignment Sample Malaysia
BSR551 Built Environment Engineering Services is a course designed to equip professionals with the essential knowledge and skills needed for assessing built environment engineering services in a commercial setting. It…


Instant Paper Writing Services by Native Malaysia Writers

Plagiarism Free Solutions
100% Original Work
24*7 Online Assistance
Native PhD Experts
Hire a Writer Now

Get Assistance for Assignments, online Exam, and Projects Writing