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The Coffee club at London University launched their coffee shop Thoughts few months ago. Thoughts have the following expenses:
Rental $80 per day
Coffee beans $5 per Coffee Cup
Sugar $0.3 per Coffee Cup
Flavors $ 0.5 per Coffee Cup
Filtered water $0.2 per Coffee Cup
Labor $30 per day
a. Calculate the fixed cost and the variable cost per day
b. If 30 students per day visit the coffee shop (each student buys one cup of coffee), how much the Manager should charge per Coffee Cup in order to breakeven?
c. After conducting a Market Survey, the Manager found out that he can charge up to $8 per Coffee Cup and decided to do so. How many students should visit Thoughts so it doesn't operate at a loss?
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