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Norman owns a caf. Normans caf sells only one type of coffee. The fixed cost...

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Accounting

Norman owns a caf. Normans caf sells only one type of coffee. The fixed cost of the caf per month is $12,000. The selling price of each coffee is $4 and the variable cost per coffee is $3. In the month of April, Normans caf sold 3300 coffees.

At the end of April, has the caf broken even? If yes, how much by? If not, how many dollars short was the caf?

The correct answer for this using Profit = sales - variable costs - fixed costs is -8700

Please solve this by using contribution margin ratio.

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