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Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte. The two drinks have the following prices and cost characteristics: Regular coffee

Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte. The two drinks have the following prices and cost characteristics:

Regular coffee Latte
Sales price (per cup) $ 1.70 $ 2.70
Variable costs (per cup) 0.70 1.30


The monthly fixed costs at Rio are $7,772. Based on experience, the manager at Rio knows that the store sells 60 percent regular coffee and 40 percent lattes.


Requirement 1:

How many cups of regular coffee must Rio sell every month to break even?(Do not round intermediate calculations.)

Number of cups

Requirement 2:

How many cups of lattes must Rio sell every month to break even?(Do not round intermediate calculations.)


Number of cups

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