Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cofee shop. provided the following information Selling Price per cup: $5.00 Variable Cost per cup: $1.39 Fixed Costs per month: $43,700 REQUIRED: 1. What is

Cofee shop. provided the following information Selling Price per cup: $5.00 Variable Cost per cup: $1.39 Fixed Costs per month: $43,700 REQUIRED: 1. What is their contribution margin per cup? 2. How many cups do they need to sell each month to break even? (Round your answer up to the next unit, e.g. 7,655.211 would round up to 7,656.) 3. They think they can sell an average of 30 cups of cold brew per hour. They will be open for 12 hours per day, every day (30 days per month). So they think they can sell 10,800 cups per month. Calculate total cost per cup at a rate of 10,800 cups per month. Round your answer to the nearest dollar, two decimal places, expressed in dollars and cents. (Hint: If 10,800 cups per month is less than break even, then this could be greater than the selling price.) 4. Evan the Entrepreneur needs $5,000 per month to meet basic personal living expenses, which will come from the business profit. How many cups of coffee will they need to sell each month to meet this target

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Forensics Audits And Dreaming

Authors: Helgard Petrus - Coetser

1st Edition

ISBN: 1664260250, 978-1664260252

More Books

Students also viewed these Accounting questions

Question

2. What potential barriers would you encourage Samuel to avoid?

Answered: 1 week ago