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How many cups of regular coffee and lattes must rio sell

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Reference no: EM133140276

Question - 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

$2.50

Variable costs (per cup)

0.60

1.00

The monthly fixed costs at Rio are $8,662. 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?

Reference no: EM133140276

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