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taurus [48]
3 years ago
8

Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte. The two drinks have the following prices and cost chara

cteristics: Regular Coffee Latte Sales price (per cup) $ 1.60 $ 2.80 Variable costs (per cup) 0.90 1.70 The monthly fixed costs at Rio are $5,494. 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
Business
1 answer:
stepan [7]3 years ago
3 0

Answer:

a) Regular coffee cups required to be sold = 4,690

b) Latte cups required to be sold = 2,010

Explanation:

As per the data given in the question,

For computing Contribution per mix :

Particulars              Regular             Coffee Latte

Sales price              $1.60                 $2.80

Less: variable cost $0.90                $1.70

Contribution           $0.70                 $1.10

Contribution per mix = ($0.70 × 70%) + ($1.10 × 30%)

= $0.82

Breakeven point at sales mix = Fixed cost ÷ Contribution per mix

=$5,494 ÷ $0.82

= 6,700 mixes

Requirement:

Cups of regular coffee for breakeven = Breakeven at sales mix × %of regular coffee sales

=6,700 × 70%

= 4,690 Cups

Cups of latte for breakeven = Breakeven at sales mix × %of latte sales

=6,700 × 30%

=2,010 Cups

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Answer:

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Explanation:

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5 0
2 years ago
The president of a growing engineering firm wishes to give each of 20 employees a holiday bonus. how much needs to be deposited
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4 0
3 years ago
Jack offers to sell Jill his automobile for $10,000. Jill says she must think about but that she is not rejecting his offer. Jil
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On November 1, 2021, Aviation Training Corp. borrows $48,000 cash from Community Savings and Loan. Aviation Training signs a thr
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Answer:

Explanation:

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(A) Cash A/c Dr $48,000

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              To Interest payable A/c $480

(Being accrued interest adjusted)

The computation is shown below:

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8 0
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34kurt

Answer:

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