Question: Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte. The two drinks have the following prices and cost characteristics: Sales
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 costs (per cup) Regular Coffee $ 1.60 0.70 Latte $ 2.60 1.70 The monthly fixed costs at Rio are $6,300. 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 break even? Break-even Sales in Units Regular coffee Lattes References eBook & Resources Worksheet Difficulty: 2 Medium Learning Objective: 03-04 Incorporate taxes, multiple products, and alternative cost structure into the CVD analucic.
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