It costs People’s Place $0.20 for coffee beans per each cup of coffee, $0.10 per coffee cup, and $0.05 every time the coffee machine is used. The company also pays fixed costs of $700 for labor for each week, and $200 for rent and insurance on the coffee shop each week. The price of a cup of coffee is $1.25. How many cups of coffee do they need to sell if they want to break-even
It costs People’s Place $0.20 for coffee beans per each cup of coffee, $0.10 per coffee cup, and $0.05 every time the coffee machine is used. The company also pays fixed costs of $700 for labor for each week, and $200 for rent and insurance on the coffee shop each week. The price of a cup of coffee is $1.25. How many cups of coffee do they need to sell if they want to break-even
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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It costs People’s Place $0.20 for coffee beans per each cup of coffee, $0.10 per coffee cup, and $0.05 every time the coffee machine is used. The company also pays fixed costs of $700 for labor for each week, and $200 for rent and insurance on the coffee shop each week. The price of a cup of coffee is $1.25.
How many cups of coffee do they need to sell if they want to break-even?
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