Page of 3 ZOOM You are planning to open a coffee shop in the College of Business. You plan to charge $2.00 for a cup of coffee (ignore food/fancy drinks for simplicity). Your cost estimates are as follows: . variable costs: $0.25 per cup (coffee beans, paper cups, etc.) fixed costs: $17,500 per month (rent $6,000, staff salaries $8,000, utilities $1,500, depreciation $2,000) Questions: 1) If you expect to sell 1,000 cups per month, shall we open the business? 2) How many cups do you need to sell to break even? What is your breakeven revenue? 3) How much do you need to sell to make a profit of $7,000/month