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5 Rio Coffee Shoppe sells two coffee drinks-a regular coffee and a latte. The two drinks have the following prices and cost characteristics: 2
5 Rio Coffee Shoppe sells two coffee drinks-a regular coffee and a latte. The two drinks have the following prices and cost characteristics: 2 points Sales price (per cup) Variable costs (per cup) Regular Coffee $ 1.40 0.70 Latte $ 2.20 1.50 The monthly fixed costs at Rio are $4,830. Based on experience, the manager at Rio knows that the store sells 70 percent regular coffee and 30 percent lattes. Required: How many cups of regular coffee and lattes must Rio sell every month to break even? > Answer is complete but not entirely correct. Regular coffee Lattes Break- even Sales in Units 2,367 1,014 X
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