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Rio Coffee Shoppe sells two coffee drinks, a regular coffee and a latte. The two...

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Accounting

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 every month to break even?

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