The Coffee Express Has Computed Its Fixed Costs to Be

question 20

Multiple Choice

The Coffee Express has computed its fixed costs to be $0.34 for every cup of coffee it sells given annual sales of 212,000 cups.The sales price is $1.49 per cup while the variable cost per cup is $0.63.How many cups of coffee must it sell to break-even on a cash basis?

• A)83,814
• B)96,470
• C)123,910
• D)167,630
• E)212,000

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