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Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average
Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.36. The average fixed expense per month is $1,300. An average of 2,100 cups are sold each month. What is the break-even sales dollars?
a. $1,300
b. $1,715
c. $1,788
d. $3,129
1.49 (x) 0.36 (x) 1300 = 0
x = 1150
1150 x 1.13 = 1300
Breakeven sales = 1300. Why is it not 1300??
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