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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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