Question
Best Coffee operates in a Brisbane shopping centre. The average selling price of a cup of coffee is $1.49 and the average variable cost per
Best Coffee operates in a Brisbane shopping centre. The average selling price of a cup of coffee is $1.49 and the average variable cost per cup is $0.36. The average fixed expense per month is $1,300. 2,100 cups are sold each month on average.
14. What is the break-even sales in units (rounded)?
a. 872 cups.
b. 3,611 cups.
c. 1,200 cups.
d. 1,151 cups.
e. None of the above.
15. What is the break-even sales in dollars (rounded)?
a. $1,300.
b. $1,715.
c. $1,788.
d. $3,129.
e. None of the above.
16. How many cups of coffee would have to be sold to attain target profits of $2,500 per month?
a. 3,363 cups.
b. 2,212 cups.
c. 1,150 cups.
d. 4,200 cups.
e. None of the above.
17. If variable costs increased by $0.20 per cup and fixed expense increased $200 per month, how many cups of coffee would have to be sold to attain the same target profits of $2,500 per month?
a. 3,363 cups.
b. 1,613 cups.
c. 3,871 cups.
d. 4,302 cups.
e. None of the above
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