How many cups of regular coffee and lattes must rio sell

Reference no: EM131971672

Problem

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)              $ 1.70                  $ 2.80
Variable costs (per cup)         0.80                     1.10

The monthly fixed costs at Rio are $7,252. Based on experience, the manager at Rio knows that the store sells 90 percent regular coffee and 10 percent lattes.

Required:

How many cups of regular coffee and lattes must Rio sell every month to break even?

Reference no: EM131971672

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