Solution
Contribution margin = Sales - Variable cost
Contribution margin to Regular coffe = 1.70 - 0.80 = 0.9 Per cup
Contribution margin to Latte = 2.50 - 1.50 = 1 Per cup
Weighted average contribution margin = Respective contribution margin * Respective sales mix
= (0.9 * 0.70) + (1 * 0.30) = $ 0.93 Per cup
Total breakeven = Fixed cost / Weighted average cotribution margin
= 6324 / 0.93 = 6800 Cups
Breakeven for Regular coffe = 6800 * 70% = 4760 Cups
Breakeven for Lattes = 6800 * 30% = 2040 Cups
nissagmail.c. RefWorks > Save to RefWorks Sign in - Zoom value 20.00 points Rio Coffee Shoppe...
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: 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...
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: Sales price (per cup) Variable costs (per cup) Regular Coffee Latte $1.50 $2.50 0.701 .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 month to...
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: 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 $ 2.60 0.60 1.10 The monthly fixed costs at Rio are $7,665. 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...
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 $ 2.30 Variable costs (per cup) 0.60 1.20 The monthly fixed costs at Rio are $7,446. 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...
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 $ 2.60 Variable costs (per cup) 0.50 1.50 The monthly fixed costs at Rio are $7,920. 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...
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...