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How many cups of regular coffee must rio sell every month

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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) $ 1.50 $ 2.80

Variable costs (per cup) 0.90 1.00

The monthly fixed costs at Rio are $9,636. Based on experience, the manager at Rio knows that the store sells 40 percent regular coffee and 60 percent lattes.

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

Reference no: EM131802186

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