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Help solving both problems! Question 7 1 pts Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a
Help solving both problems!
Question 7 1 pts Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.59 and the average variable expense per cup is $0,56. The average fixed expense per month is $1,450. 2,200 cups are sold each month on average. What total sales dollar figure must the company achieve to earn a target profit of $6,000? Use the equation method or the formula method. Round to the nearest dollar. Hint: use the CM ratio from problem #5. $9,879 $11,879 $10,589 $11.497 Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.59 and the average variable expense per cup is $0.56. The average fixed expense per month is $1.450. Current sales are $3,498 (2.200 cups of coffee). What is the degree of operating leverage? Hint: you will need to calculate total variable costs (units x variable cost per unit), then calculate total contribution margin (total sales - total var. costs), then calculate net operating income (total contribution margin-total fixed costs). Degree of operating leverage - Total CM/Net operating income 278 0 245 03.12 8.90 Step by Step Solution
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