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

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

Regular Coffee Latte
Sales price (per cup) $ 1.80 $ 2.80
Variable costs (per cup) 0.80 1.20

The monthly fixed costs at Rio are $8,432. Based on experience, the manager at Rio knows that the store sells 60 percent regular coffee and 40 percent lattes.

Required:

How many cups of regular coffee and lattes must Rio sell every month to break even?

image text in transcribed

Break-even Sales in Units Regular coffee Lattes

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