Question

Mary owns a coffee shop. She charges $4.50 for a cup of coffee, and it costs her $1.25 to make each cup of coffee plus a $75 a day for other expenses. Write and solve an equation to determine how many cups of coffee, c, will Mary need to sell to break-even?

Answer 1

Approximately 23 cups of coffee

Explanation:

Break even = Fixed cost/Selling price - variable cost

Fixed cost = $75

Selling price = $4.50

Variable cost = $1.25

Break even = $75/$4.50 - $1.25

= 23.076923077

Approximately = 23

Therefore, Mary has to sell approximately 23 cups of coffee daily in order to break evem