Diaz John Diaz Immigrated to Tallahassee from Cuba in the 1980s

question 19

Multiple Choice

Diaz
John Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop. Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $8 per pound Brazilian Cerrado to $300 per pound Kopi Luwak from Sumatra.
-Refer to Diaz.In terms of ownership,Diaz's coffee shop would be classified as a(n) :

• A) franchise.
• B) wholesaler.
• C) independent retailer.
• D) agency.
• E) chain store.

Conduct a cost-volume-profit analysis for multi-product companies with known sales mixes.

Calculate the margin of safety and its implications for business stability.

Determine the unit sales required to achieve target pre-tax income.

Apply the high-low method to estimate costs.