Toms caf sells filter coffee. Tom has calculated that it has fixed costs of $3000. The unit

Tom’s café sells filter coffee. Tom has calculated that it has fixed costs of $3000. The unit variable cost associated with producing a cup of coffee is the sum of; $2 raw material, $1.5 factory labor, and $1.5 electricity costs. The per cup of coffee is priced at $7. 

If the Lucy’s café plans to produce and sell 420,000 units calculate and interpret

a. Unit cost

b. Break-even volume in units and dollar sales.

Answer rating: 100% (QA)

To calculate the unit cost we need to sum up the fixed costs and the variable costs associated with ... View the full answer