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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Definitions:

Germination

The method through which a plant develops from a seed or a comparable entity.

Ultraviolet Radiation

A form of electromagnetic radiation with wavelengths shorter than visible light, capable of causing damage to living tissue.

Infrared Radiation

Infrared radiation is a type of electromagnetic radiation that is invisible to the human eye but can be felt as heat.

Biogeochemical Cycle

Process by which matter cycles from the living world to the nonliving, physical environment and back again (e.g., the carbon cycle, the nitrogen cycle, and the phosphorus cycle).