Coffee Platch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is 2.39 and the average variable expense per cup is 0.47. Other information are as follows:

i. The average fixed expense per month is 1255.

ii. The target profit for the month is 2600.

iii. Sales increases by 15%

Determine the following:

a. Cups of coffee would have to be sold to attain the target profit.

b. Sales revenue that must be generated to attain the target profits

c. CM per unit

d. CM ratio

e. BE in units

f. BE in sales

g. MOS in Units

h. MOS ratio

i. MOS

j. OL

h. Increase in profit %

(18 marks) (20 min)