Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte The two drinks have the following prices and cost characteristics Regular Coffee Latte Sales price (per cup) $ 1 70 $ 2 70 Variable costs (per cup) 0 60 1 50 The monthly fixed costs at Rio are $7,797 Based on experience, the manager at Rio knows that the store sells 70 percent regular coffee and 30 percent lattes Required How many cups of regular coffee and lattes must Rio sell every month to break even

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

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

	Regular Coffee		Latte
Sales price (per cup)	$	1.70	$	2.70
Variable costs (per cup)		0.60		1.50

The monthly fixed costs at Rio are $7,797. Based on experience, the manager at Rio knows that the store sells 70 percent regular coffee and 30 percent lattes.

Required:

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

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