Rio Coffee Shoppe sells two coffee drinks-a regular coffee and a latte. The two drinks have...
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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 $ 1.40 0.70 Latte $ 2.30 1.40 The monthly fixed costs at Rio are $5,254. 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 Regular coffee Lattes Sales in Units 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 $ 1.40 0.70 Latte $ 2.30 1.40 The monthly fixed costs at Rio are $5,254. 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 Regular coffee Lattes Sales in Units
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