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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: Sales price

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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: Sales price (per cup) Variable costs (per cup) Regular Coffee s 1.60 0.80 Latte 2.60 1.30 The monthly fixed costs at Rio are $6,210. Based on experience, the manager at Rio knows that the store sells 80 percent regular coffee and 20 percent lattes Required: How many cups of regular coffee and lattes must Rio sell every month to break even? Break-even Sales in Units Regular coffee Lattes Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte. The two drinks have the following prices and cost characteristics: Sales price (per cup) Variable costs (per cup) Regular Coffee s 1.60 0.80 Latte 2.60 1.30 The monthly fixed costs at Rio are $6,210. Based on experience, the manager at Rio knows that the store sells 80 percent regular coffee and 20 percent lattes Required: How many cups of regular coffee and lattes must Rio sell every month to break even? Break-even Sales in Units Regular coffee Lattes

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