Rio coffee shoppe sells two coffee drinks a regular coffee

Reference no: EM13601051

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 $ 2.70 Variable costs (per cup) 0.70 1.30 The monthly fixed costs at Rio are $7,772. Based on experience, the manager at Rio knows that the store sells 60 percent regular coffee and 40 percent lattes. Requirement 1: How many cups of regular coffee must Rio sell every month to break even? (Do not round intermediate calculations.) Number of cups Requirement 2: How many cups of lattes must Rio sell every month to break even? (Do not round intermediate calculations.) Number of cups

Reference no: EM13601051

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