Question

Alexa owns a Coffee Shop. The following information is from her accountant: Expenses: Advertising $45.00 Coffee, cups, sweetener, flour, etc. $8.02 per cup of coffee and a muffin Monthly rental $105.00 What will her break even point be if she sets the price for coffee and a muffin at $12.02.

Answer 1

rate positively ..

Sales price =	12.02
Variable cost =	8.02
Contribution margin =	4
Fixed cost =	150
(45+105)
Break even point in unit =	37.5	or 38 unit
150/4
Break even point in dollar=	456.76
38*12.02