EX 3 46 Rio Coffee Shoppe sells two coffee drinksa regular coffee and a latte The two drinks have the following prices and cost characteristics Regular Coffee Latte Sales price (per cup) $ 1 50 $ 2 30 Variable costs (per cup) 0 80 1 70 The monthly fixed costs at Rio are $4,896 Based on experience, the manager at Rio knows that the store sells 80 percent regular coffee and 20 percent lattes Required How many cups of regular coffee and lattes must Rio sell every month to break even

The Answer is in the image, click to view ...

Question: EX 3-46 Rio Coffee Shoppe sells two coffee drinksa regular coffee and a latte. The two drinks have the following prices and cost characteristics: Regular

EX 3-46

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

	Regular Coffee		Latte
Sales price (per cup)	$	1.50	$	2.30
Variable costs (per cup)		0.80		1.70

The monthly fixed costs at Rio are $4,896. Based on experience, the manager at Rio knows that the store sells 80 percent regular coffee and 20 percent lattes.

Required:

How many cups of regular coffee and lattes must Rio sell every month to break even?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Review the calculations for The Diamond Ridge Golf Course example discussed in the chapter. 1. Based on these calculations, is there any good-will value? If so, how much? 2. How did you make this...

8 Rio Coffee Shoppe sells two coffee drinks-a regular coffee and a latte. The two drinks have the following prices and cost characteristics: Sales price per cup) Variable conta per cup) Megular...

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...

1. 2. 3. 4. 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 $8,249. Based...

Rio Coffee Shoppe sells two coffee drinks-a regular coffee and a latte. The two drinks have the following prices and cost characteristics: Sales prion (par eup) Variable costs per cup) Use Cotton...

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 $6,760. Based on...

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 Rlo are $6,435. Based on...

Exercise 3-46 (Algo) Multiproduct CVP Analysis (LO 3-4) Rio Coffee Shoppe sells two coffee drinks-a regular coffee and a latte. The two drinks have the following prices and cost characteristics:...

Bristol Car Service offers airport service in a mid-size city. Bristol charges $38 per trip to or from the airport. The variable cost for a trip totals $36, for fuel, driver, and so on. The monthly...

Rio Coffee Shoppe sells two coffee drinksa regular coffee and a latte. The two drinks have the following prices and cost characteristics: Regular Coffee Latte Sales price (per cup) $ 1.50 $ 2.30...

Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics 5 Sales price Variable costs Fixed conta 21 per unit 8 per unit 26,000 per...

Two different methods can be used for measuring the temperature of the solution in a Hall cell used in aluminum smelting, a thermocouples implanted in the cell and an indirect measurement produced...

What is the mass percent of an aqueous sodium hydroxide solution in 1000 g of H,O if the molality of NaOH is 10.7m?

TO SUBMIT A REPORT ON AFTER - ACTION REVIEW: The board of directors agreed to the sale of the organization. However, you have just been notified that the primary buyer has withdrawn from the sale....

The financial statements of R Ltd for the year to 30 April 2018 are as follows: R Ltd Statement of comprehensive income for the year to 30 April 2018. Statement of financial position as at 30 April...

In the pinewood-derby event shown, the car is released from rest at the starting position A and then rolls down the incline and on to the finish line C. If the constant acceleration down the incline...

What do you think are the three most signifi cant issues facing engineers today? Prepare a technical report of at least 250 words that explains your rationale.

Determine the input impedance seen by the source in the network shown in Figure P8.55 -j1C2 j1 1:4 32 2 . 1612 deal Ideal Figure P8.55

Show how to derive the consumers lifetime budget constraint from the consumers cur-rent-period and future-period budget constraints.

This type of decision - maker simply does not make a decision.

What does this key public know about this issue?

What is the nature and type of each key public?

What does this public need on this issue?