Evan the Entrepreneur loves cold brew. So he$$s opening an independent coffee shop on King Street

selling only one variety of cold brew, because he thinks it$$s the best idea ever. He$$s provided the

following information $($and these numbers are surprisingly realistic given rents and other costs on King

Street$)$:

Selling Price per cup: $$5\mathrm{.}00$

Variable Cost per cup: $$1\mathrm{.}74$

Fixed Costs per month: $$36,000$

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$.7,655\mathrm{.}211$ 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?

INSTRUCTIONS FOR TURNING IT IN:

$1.$ Indicate your answers on the answer sheet $($on the next page of this $.$pdf$).$

$2.$ Make sure your name is on the answer sheet, and sign the honor code statement. You are to

work on this independently, without any outside assistance, and without anyone else. This

includes any online study aids $($like Chegg Homework Helper, for example$).$ If the honor code

statement isn$$t signed, you will get a zero for this assignment.

$3.$ Scan and upload your answer sheet in $.$pdf format. No other formats $($such as Apple $.$HEIC

format$)$ will be accepted. No $.$pdf$,$ no credit.

LATE ASSIGNMENTS WILL NOT BE ACCEPTED UNDER ANY CIRCUMSTANCE!