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: 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
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