Question: Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte. The two drinks have the following prices and cost characteristics: The monthly

Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte. The two drinks have the following prices and cost characteristics:

The monthly fixed costs at Rio are $6,720. 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 breakeven?

Sales price (per cup). Variable costs (per cup) Regular Cofee Latte $2.50 1.30 $1.50 70

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