Question
Tanias Coffee sells one large coffees for every three small ones. A small coffee sells for $4 per cup, with a variable cost of $2
Tanias Coffee sells one large coffees for every three small ones. A small coffee sells for $4 per cup, with a variable cost of $2 per cup. A large coffee sells for $5 per cup with a variable cost of $2.80 per cup. a. What is the average sales price per unit? b. What is the average variable cost per unit? c. What is the weighted-average contribution margin (average CM per unit)? d. If the monthly fixed cost of the Raynold Coffee shop is $24,600, how many coffees does she need to sell in a month to break even? e. How many small and large coffees should she sell in a month to make $12,300 operating income? Small: ______ Large:________
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