Question
Did I complete the cost of Goods estimate and determine the revenue required for break even on Caribou Coffee marketing plan? Did I figure the
Did I complete the cost of Goods estimate and determine the revenue required for break even on Caribou Coffee marketing plan? Did I figure the following correctly or did I do it incorrectly? Is my math correct?
Cost of goods estimate 400 million cups of coffee per day. Average cost of coffee is 2.00, coffee cost .50 cents, .20 cents for the cup, lid, and stirrer, plus .05 cents for the water costing an overall cost to Carbiou of .75 cents.If the average cost charged for a cup of coffee is $2.00 so the profit for every cup of coffee sold would be $1.25.If 400 million cups of coffee are sold for $2.00 per cup the revenue would be 800 million in gross sales and the cost of goods sold would be 500 million. Break even would need to be 278.4 million cups of coffee.
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