Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cassandra Duncan owns a small coffee shop in Massachusetts. Please examine the data below and calculate the number of customers that she must serve per

Cassandra Duncan owns a small coffee shop in Massachusetts. Please examine the data below and calculate the number of customers that she must serve per day in a typical month in order to break even.
Monthly Operating Costs:
Rent$ 15,000
Equipment lease agreements$ 2,500
Contracted services$ 1,000
Software subscriptions (dues and subscriptions)$ 400
Insurance$ 1,200
Labor Costs$ 25,000
Utilities$ 1,200
Advertising$ 500
Average Revenue per Customer per Day$ 9.50
Average Expenses for That Customer
Food costs$ 2.00
Beverage costs$ 1.25
Credit card processing fees$ 0.33
Supplies$ 0.80

Step by Step Solution

3.45 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

A B C 1 Average revenue per customer per Day 950 2 Less Va... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Supply Chain and Operations An Integrative Approach

Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb

1st edition

132832402, 978-0132832403

More Books

Students also viewed these Accounting questions

Question

2. Recognize students who are helpful.

Answered: 1 week ago