Regular coffee | Latte | |
Selling price per unit | $1.60 | $2.60 |
Variable cost per unit | $0.60 | $1.10 |
Contribution margin per unit | $1 | $1.50 |
Sales mix = Regular coffee : Latte
= 90:10
Weighted average Contribution margin per unit = Contribution margin per unit of Regular coffee x Proportion of Regular coffee + Contribution margin per unit of Latte x Proportion of Latte
= 1 x 90% + 1.50 x 10%
= 0.90 + 0.15
= $1.05
Break even point (units) = Fixed cost/Weighted average Contribution margin per unit
= 7,665/1.05
= 7,300
Break even quantity of Regular coffee = Break even units x Proportion of Regular coffee
= 7,300 x 90%
= 6,570 cups
Break even quantity of Latte = Break even units x Proportion of Latte
= 7,300 x 10%
= 730 cups
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Rio Coffee Shoppe sells two coffee drinks-a regular coffee and a latte. The two drinks have...
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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 $1.40 Latte Sales price (per cup) Variable costs (per cup) $ 2.60 1.20 0.70 The monthly fixed costs at Rio are $6,643. 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...
Rio Coffee Shoppe sells two coffee drinks-a regular coffee and a latte. The two drinks have the following prices and cost characteristics: Sales price (per cup) Variable costs (per cup) Regular Coffee Latte $ 1.60 $ 2.70 0.70 1.50 The monthly fixed costs at Rio are $7,227. 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...
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 $ 2.80 Variable costs (per cup) 0.60 1.70 The monthly fixed costs at Rio are $8,211. Based on experience, the manager at Rio knows that the store sells 90 percent regular coffee and 10 percent lattes. Required: How many cups of regular coffee and lattes must Rio sell every...
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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)
$
1.80
$
2.80
Variable costs (per cup)
0.80
1.20
The monthly fixed costs at Rio are $8,432. Based on experience, the
manager at Rio knows that the store sells 60 percent regular coffee
and 40 percent lattes.
Required:
How many cups of regular coffee and lattes must Rio sell every...
Rio Coffee Shoppe sells two coffee drinks-a regular coffee and a latte. The two drinks have the following prices and cost characteristics: Sales price (per cup) Variable costs (per cup) Regular Coffee Latte $ 1.70 $ 2.80 0.70 1.20 The monthly fixed costs at Rio are $7,616. Based on experience, the manager at Rio knows that the store sells 80 percent regular coffee and 20 percent lattes. Required: How many cups of regular coffee and lattes must Rio sell every...
Rio Coffee Shoppe sells two coffee drinks-a regular coffee and a latte. The two drinks have the following prices and cost characteristics: Sales price (per cup) Variable costs (per cup) Regular Coffee $ 1.50 0.70 Latte $ 2.50 1.30 The monthly fixed costs at Rio are $6,720. Based on experience, the manager at Rio knows that the store sells 60 percent regular coffee and 40 percent lattes. Required: How many cups of regular coffee and lattes must Rio sell every...
nissagmail.c. RefWorks > Save to RefWorks Sign in - Zoom value 20.00 points 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 $ 2.50 Variable costs (per cup) 0.80 1.50 The monthly fixed costs at Rio are $6,324. Based on experience, the manager at Rio knows that the store sells 70 percent regular coffee and 30 percent...