Question: Problem # 4 ( 8 points ) A group of students have decided to open a caf in the public library. The library has agreed
Problem # points A group of students have decided to open a caf in the public library. The library has agreed to rent them the space and equipment for the caf for $ per month. The students have decided to start small, offering brewed coffee in regular, decaf, and flavored varieties. They plan to sell only one size cup of coffee and to charge the same price for regular, decaf, or flavored coffee.
In addition to the rent that they pay to the library, the students must also pay utilities of $ per month, insurance of $ per month, and other overhead of $ per month. Each cup of coffee costs to brew, for the cup, and an average of for the milk and sugar that consumers add to their coffee. The students will also need to increase awareness of the caf and they have budgeted $ per month in advertising costs to accomplish this.
What are our total fixed costs?
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