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You are asked by Harrison Barker to run a new coffee location on campus to reduce the existing long coffee lines before the first class
You are asked by Harrison Barker to run a new coffee location on campus to reduce the existing long coffee lines before the first class each morning, at lunch time, and at dinner time. Barker suggest you sell each cup of coffee for $3.00. Barker will charge you $2,500 each month for the room, equipment, and utilities. Plus, they will charge you on a per cup basis: - \$0.28 for the coffee, - $0.10 for each cup, - \$0.05 for each lid, - \$0.08 for cream, \& - \$0.02 for sugar. It is estimated that 50% of sales will take cream, 25% will take cream and sugar, and 25% will be sales of just black coffee. You are to earn $0.25 on each cup of coffee sold, plus you will share 50% all profits earned each month. You sell 4,000 cups of coffee the first month. Required. 1) What is your breakeven point in \# and $ 2) How much do you earn in the first month
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