Question
Spartan Coffee has computed its fixed costs to be $0.34 for every cup of coffee it sells given annual sales of 212,000 cups. The sales
Spartan Coffee has computed its fixed costs to be $0.34 for every cup of coffee it sells given annual sales of 212,000 cups. The sales price is $1.49 per cup while the variable cost per cup is $0.63. Depreciation is $56,920, and Operating Cash Flow where NPV equals zero is 94,244. The companys tax rate is 30%.
How many cups of coffee must it sell to break-even on an accounting basis?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
11th Edition
0321357965, 978-0321357960
