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Problem 2: Breakeven Analysis: #63-66 Winter Thaw is exploring opening some additional coffee stands to expand their product line. The owner's budget projections for each

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Problem 2: Breakeven Analysis: #63-66 Winter Thaw is exploring opening some additional coffee stands to expand their product line. The owner's budget projections for each additional coffee stands include the following assumptions: *each cup of coffee should sell for $4.00 *variable costs per cup are expected to be $0.75 *startup costs for each additional coffee stand are expected to be $19,500 Question 63 (1.25 points) How much is required in total sales dollars at each coffee stand to breakeven in Year 1? Question 63 (1.25 points) How much is required in total sales dollars at each coffee stand to breakeven in Year 1? $104,000 $78,000 O none of these O $24,000 O $4,875 Question 64 (1.25 points) If an additional coffee stand is able to sell 8,000 cups of coffee in its first year of operations, what is the projected amount of profit after paying for both fixed and variable costs? $6,000 $26,000 none of these $6,500 $12,500 Question 65 (1.25 points) If the selling price per cup of coffee is reduced by 20% and the owner plans an additional $2,000 for advertising during the first year of business, how many cups of coffee will need to be sold to breakeven? (Round answer to the nearest cup). 06,250 cups 7,959 cups 5,375 cups Onone of these 8,776 cups Question 66 (1.25 points) If management plans for each coffee stand to earn $30,000 of sales during Year 1, calculate the margin of safety: 20% $24,000 none of these 80% Not enough information to calculate

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