Chapter 1 Whole Numbers and Decimals

In 1971, Starbucks Coffee opened its first location in Pike Place Market-Seattle's legendary open-air farmer's market. By 1991, Starbucks had expanded its corporate headquarters in Seattle and built a new roasting plant. Starbucks Specialty Sales & Marketing Division then expanded into Portland, Chicago, and other Illinois markets. Starbucks Specialty Sales & Marketing Division was awarded Horizon Air's national coffee account.

That same year, Starbucks announced its commitment to establish a long-term relationship with CARE (www.care.org), the international relief and development organization, and introduced the CARE coffee sampler. Other charitable actions include the Starbucks Foundation, which was launched in 1997 through an initial contribution from Starbucks chairman, and CEO Howard Schultz. This non-profit foundation supports philanthropic efforts in the communities where Starbucks partners and customers live, work, and play. The Starbucks Foundation was established to create hope, discovery, and opportunity in communities throughout the U.S. In just one year, the foundation has reached thousands of families and children through a variety of literacy programs. The Trudeau/Doonesbury program is an extension of Starbucks' ongoing commitment to enable children and adults to benefit from the joy of reading.

All this information and more can be found at www.starbucks.com/company/?sid=&&.

Problem:

Preparation:

In preparation for this problem, a series of questions are given. In answering the questions, the information needed to continue with the net assets on-line problem is being compiled. To answer the questions concerning the three samplers listed below, go to www.starbucks.com/search.asp?sid=&& or from the Starbucks homepage select "search" and type in one of the samplers.

• The Literacy Sampler
• The CARE Sampler-Holiday
• The Red Ribbon Sampler-Holiday

1. The Starbucks Foundation supports local literacy program from the sales of which sampler?
2. Every sale of what sampler results in a $2 donation per sale to CARE?
3. Which sampler includes jazz CD?
4. For every Red River Sampler sold, Starbucks will donate how much to the prevention and education of HIV and AIDS?
5. The sale of what sampler will help people in coffee-producing nations?
6. For every one of what sampler sold will Starbucks donate $10 to the Starbucks Foundation?
7. What is the selling price of each of the samplers?

Questions:

1. Assume as of today's date, Starbucks donated $105,000 to the International Relief and Development Organization. $75,000 of that amount is a direct result of the sale of the Care Sampler. The remainder is a result of direct donations to the CARE project.
   1. What is the difference between the total donated $105,000 and the amount generated from the sale of the sampler?
   2. If 37,500 Care Samplers were sold, find the total amount of the Care Sampler sales.

2. Sales from the Literacy Sampler totaled $79,442.50.
   1. How many Literacy Samplers were sold?
   2. What was the dollar amount donated to the literacy program based upon the sales of the sampler?
   3. What amount would be donated if Starbucks decides to double the amount donated to the literacy program?

3. The Dean of Education at SAGU decided for Christmas to give a Red Ribbon Sampler to each of the Universities employees. She felt it was a way to give towards the fight against AIDS along with showing the employees how she appreciated the hard work that they do.
   1. If there are 318 employees at SAGU, what is the total dollar amount of the purchase?
   2. If $8 of each sale of this sampler is donated towards the fight against AIDS, how much was donated from the SAGU purchase?
   3. If Starbucks increased the donation to $8.50 for the Christmas holiday, how much was donated from the SAGU purchase?

© Copyright 2000 Addison Wesley Longman, Inc.