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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 CoffeeLatteSales price
Rio Coffee Shoppe sells two coffee drinksa regular coffee and a latte. The two drinks have the following prices and cost characteristics:
Regular CoffeeLatteSales price (per cup)$1.60$2.90Variable costs (per cup)0.601.70The monthly fixed costs at Rio are $7,844. Based on experience, the manager at Rio knows that the store sells 70 percent regular coffee and 30 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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