You own a caf in a large urban area that carries a total of $500,000 per...

 

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You own a caf in a large urban area that carries a total of $500,000 per year in Fixed Costs. Your caf sells only coffee for $2.50 per cup. The average Variable Cost per cup (coffee mix, cup costs, etc.) is $1. a. How many cups of coffee do you need to sell per day to break even? b. If the price of the coffee decreased by 10% for a special promotion (with all other costs staying the same), how many cups would you need to sell per day to break even? You own a caf in a large urban area that carries a total of $500,000 per year in Fixed Costs. Your caf sells only coffee for $2.50 per cup. The average Variable Cost per cup (coffee mix, cup costs, etc.) is $1. a. How many cups of coffee do you need to sell per day to break even? b. If the price of the coffee decreased by 10% for a special promotion (with all other costs staying the same), how many cups would you need to sell per day to break even?