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Required 1 Required 2 Required 3 Compute the difference in total revenue, total variable costs, total contribution margin, toStarcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cu

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Answer #1

The variable cost in new promotion,

cost of cup will be only paid once because we are purchasing the cup only during the first purchase. During the remaining purchases only the other costs i.e. 2.5 will be paid.

(VC is Variable Cost)

Additional fixed cost is advertising cost.

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