rmation Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte.

Question

rmation Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte. The two drinks have the following prices Flag question and cost characteristics Sales price (per cup) Variable costs (per cup) Regular Coffee $ 1.80 Latte $ 2.90 1.70 0.80 The monthly fixed costs at Rio are $7,800. Based on experience, the manager at Rio knows that the store sells 80 percent regular coffee and 20 percent lattes. estion 10 orrect arked out of 5.00 Compute the weighted average contribution margin per unit Flag question How many cups of coffee must Rio sell in total every month to break even? ot complete larked out of 6.00

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Regular Coffe Latte Total Sales price per unit                         1.80                      2.90 Variable cost per unit                      (0.80)                    (1.70) Contribution per unit                         1.00                      1.20 Sales Mix 80% 20% Weighted contribution per unit                         0.80                      0.24                      1.04 Fixed costs              7,800.00 Break even point = 7500/1.04              7,500.00 Sales in units                6,000.00              1,500.00              7,500.00 a) 1.04 b) Coffee = 7500 c) refular coffee = 6000 d) Latte 1500

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.