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8 pts Question 1 An entrepreneur is considering opening a coffee shop in downtown Cookeville. The building that he is considering will have a
8 pts Question 1 An entrepreneur is considering opening a coffee shop in downtown Cookeville. The building that he is considering will have a monthly lease payment of $4200 and basic utility costs of $600 per month. Two employees will be hired at $10.00/hour/employee (including overhead and benefits). Each employee will work an average of 170 hours per month. The average revenue per customer is estimated at $7.00 per cup. The cost of a cup of coffee is $2.9 for ingredients and $.10 for the cup. How many customers per month it will take for the coffee shop owner to breakeven? If sales are 9000 cups per month what will be the monthly profit or loss? What are the marginal and average costs at 9000 cups per month?
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