Rio Coffee Shoppe sells two coffee drinks—a regular coffee and a latte. The two drinks have the following prices and cost characteristics:The monthly fixed costs at Rio are $9,176. Based on experience, the manager at Rio knows that the store sells 70 percent regular coffee and 30 percent lattes.Required:How many cups of regular coffee and lattes must Rio sell every month to break even? Regular Coffee$ 1.90LatteSales price (per cup)Variable costs (per cup)$ 2.200.601.10The monthly fixed costs at Rio are $9,176. Based on experience, the manager at Rio knows that the store sells 70 percent regularcoffee and 30 percent lattes.Required:How many cups of regular coffee and lattes must Rio sell every month to break even?Break-evenSales in UnitsRegular coffeeLattes

A situation where an entity is having no gain and no loss is break-even.

Rio Coffee Shoppe sells two coffee drinks—a regular coffee and a latte. The two drinks have the following prices and cost characteristics: The monthly fixed costs at Rio are $9,176. 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?

Rio Coffee Shoppe sells two coffee drinks—a regular coffee and a latte. The two drinks have the following prices and cost characteristics: The monthly fixed costs at Rio are $9,176. 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?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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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) $1.60 $2.80 Variable costs (per cup) .70 1.60 The monthly fixed costs at Rio are $7,128. 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? Break-even sales in units Regular coffee ___________ Lattes ____________
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