Bristol Car Service offers airport service in a mid-size city. Bristol charges $38 per trip to or from the airport. The variable cost for a trip totals $36, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is $620.

b. Bristol's owner believes that 325 trips is a reasonable forecast of the average monthly demand. What is the margin of safety in terms of the number of airport trips?

Also:

Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte. The two drinks have the following prices and cost characteristics:

	Regular Coffee			Latte
Sales price (per cup)	$	1.60		$	2.80
Variable costs (per cup)		0.80			1.20

The monthly fixed costs at Rio are $7,104. Based on experience, the manager at Rio knows that the store sells 80 percent regular coffee and 20 percent lattes.

Required:

How many cups of regular coffee and lattes must Rio sell every month to break even?