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An entrepreneur is considering opening a coffee shop downtown. The building that he is considering will have a monthly lease payment of $3200 and basic
An entrepreneur is considering opening a coffee shop downtown. The building that he is considering will have a monthly lease payment of $3200 and basic utility costs of $600 per month. Two employees will be necessary to hire at $10.00/hour/employee (includes overhead and benefits). On average, each employee will work 170 hours per month. The average revenue per customer is estimated at $7.00. The variable cost of serving each customer is estimated at $2.00. Calculate how many customers per month it will take for the coffee shop owner to "breakeven." How many customers would need to be served per month to achieve a monthly profit of $5,000
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