Mustang Coffee is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.80 and the average variable expense per cup is $0.36. Fixed expense per month is $1,300.

1. What is the CM ratio for Mustang Coffee?

2. How many cups of coffee would have to be sold to attain target profits of $2,700 per month?

3. Determine the sales dollars that Mustang Coffee would have to generate (by selling coffee) to attain target profits of $2,700 per month.

4. What is the break-even point in units?

5. What is the break-even point in sales dollars?