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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
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 $ 1.60 0.70 Latte $ 2.60 1.60 The monthly fixed costs at Rio are $6,370. Based on experience, the manager at Rio knows that the store sells 90 percent regular coffee and 10 percent lattes. Required: How many cups of regular coffee and lattes must Rio sell every month to break even? Regular coffee Lattes Break-even Sales in Units
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