Question
EX 3-46 Rio Coffee Shoppe sells two coffee drinksa regular coffee and a latte. The two drinks have the following prices and cost characteristics: Regular
EX 3-46
Rio Coffee Shoppe sells two coffee drinksa regular coffee and a latte. The two drinks have the following prices and cost characteristics:
| Regular Coffee | Latte | |||||
| Sales price (per cup) | $ | 1.50 | $ | 2.30 | ||
| Variable costs (per cup) | 0.80 | 1.70 | ||||
The monthly fixed costs at Rio are $4,896. Based on experience, the manager at Rio knows that the store sells 80 percent regular coffee and 20 percent lattes.
Required:
How many cups of regular coffee and lattes must Rio sell every month to break even?
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Accounting What The Numbers Mean
Authors: David H. Marshall, Wayne William Mcmanus, Daniel Marshall Viele, Mcmanus Marshall, Daniel F. Viele
10th Edition
1259060705, 978-1259060700
