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 $ 1.60 0.70 Latte Sales price (per cup) Variable costs (per cup) $ 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

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 $ 1.60 0.70 Latte Sales price (per cup) Variable costs (per cup) $ 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

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 9MCQ: Carroll Company, a manufacturer of vitamins and minerals, has been asked by a large drugstore chain...

See similar textbooks

Similar questions

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) Regular-$1.60 Latte-$2.60 Vaiable Costs (per cup) Regular-0.60 Latte-1.00 The monthly fixed costs at Rio are $8,260. Based on experience, the manager at Rio know 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?
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) $1.60 $2.80 Variable costs (per cup) .70 1.60 The monthly fixed costs at Rio are $7,128. 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? Break-even sales in units Regular coffee ___________ Lattes ____________
Rio Coffee Shoppe sells two coffee drinks—a regular coffee and a latte. The two drinks have the following prices and cost characteristics: The monthly fixed costs at Rio are $9,176. 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?
The Best Taste ice cream company has a weekly fixed cost of $ 325 and a cost of $1.5 per cup. The cups of ice-cream are sold for $4. i) Find the cost and revenue functions. ii) How many cups must be sold for break-even? What is break even revenue? iv) The maximum number of cups per week is 100. Is this a profitable business? Explain
please show all work and preferably on paper Question 2. The marketing manager for Tim Hortons is attempting to price a cup of coffee. She knows that the cost of the coffee is $0.14 per cup, and expenses are 30% of the regular selling price. She would like the coffee to achieve an 88.24% markup on selling price.a) What is the regular selling price for a cup of coffee?b) What is the profit per cup?c) What is the markup on cost percentage?
Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs thebusiness $30 to place a single order.The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. TheEOQ model is appropriate.i) What is the cost minimizing solution for this product each year?ii)Determine the re-order level, minimum inventory level and maximum inventory level for the product.
How did they get this answer?
The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super Shag carpet. The annual carrying cost for a yard of this carpet is $0.75, and the ordering cost is $150. The carpet manufacturer normally charges the store $8 per yard for the carpet; however, the manufacturer has offered a discount price of $6.50 per yard if the store will order 5,000 yards. How much should the store order, and what will be the total annual inventory cost for that order quantity?
Sugary Spice sells glazed ever fresh donuts. Demand for donuts is 500 boxes per week. Sugary Spice has a holding cost of 30 percent and incurs a fixed cost of $100 for each replenishment order it places for donuts. Given that cost is $2 per box of Donuts: a) How much should Sugary Spice order in each replenishment lot? b) If a trade promotion lowers the price of Frostee Flakes to $1.80 for a month, how much should Tastee Mart order given the short-term price reduction? c) What is the forward buy quantity
Snickle currently sells hot dogs. The selling price per hot dog is $2 and the variable cost per hot dog is $0.70. During a typical month, the company sells 25,000 hot dogs and reports a profit of $9,750. How many hot dogs must the company sell to breakeven?
Cost, Revenue, Profit You decide to begin selling ice cream cones at the local park and swap. Your cost for each ice cream cone is $1.33 plus you have to pay a fixed weekly fee of $240 for the booth. Your plan is to sell each ice cream cone for $2.75. 1. Write an expression to represent your total costs for the week if you sell n ice cream cones. Total Costs: 2. Write an expression to represent the revenue from the sale of n ice cream cones during the week. Revenue: 3. Write an expression that represents the profit for selling n ice cream cones in a given week. Profit: How many ice cream cones must you sell in order to make a positive profit? In order to make a positive profit, you would have to sell Select an answer ice cream cones. ↑
Yarn Basket, Ltd., sells handminus−knit scarves. Each scarf sells for $35. The company pays $350 to rent a vending space for one day. The variable costs are $10 per scarf. What total revenue amount does the company need to earn to break even?