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Business, 20.09.2020 15:01 Nigward666

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) $1.80 $2.30
Variable costs (per cup) 0.70 1.10

The monthly fixed costs at Rio are $7,458. Based on experience, the manager at Rio knows that the store sells 70 percent regular coffee and 30 percent lattes.

Required:
a. How many cups of regular coffee must Rio sell every month to break even?
b. How many cups of lattes must Rio sell every month to break even?

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Answers: 1

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Rio Coffee Shoppe sells two coffee drinks—a regular coffee and a latte. The two drinks have the foll...
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