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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?
Break-even Sales in Units Regular coffee LattesStep by Step Solution
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