Kent Coffee Haus sells Drip Coffee, Cappuccino, or Lattes. It sold 20,000 total cups of various coffee products last year. Drip Coffee outsold Cappuccino 2 to 1. Sales of Lattes were the same as sales of Drip Coffee. Fixed costs for the company are $15,000 and additional information follows:
a. Calculate the sales mix percentage of all three products (based upon the number of cups).
b. Calculate the weighted average contribution margin for all three types of drinks.
c. Calculate the breakeven volume in number of cups.
d. Calculate the breakeven sales in dollars.

Question

Kent Coffee Haus sells Drip Coffee, Cappuccino, or Lattes. It sold 20,000 total cups of various coffee products last year. Drip Coffee outsold Cappuccino 2 to 1. Sales of Lattes were the same as sales of Drip Coffee. Fixed costs for the company are $15,000 and additional information follows:
  a. Calculate the sales mix percentage of all three products (based upon the number of cups).
b. Calculate the weighted average contribution margin for all three types of drinks.
c. Calculate the breakeven volume in number of cups.
d. Calculate the breakeven sales in dollars.

Quizplus · Accepted Answer

The Answer of Kent Coffee Haus sells Drip Coffee, Cappuccino, or Lattes. It sold 20,000 total cups of various coffee products last year. Drip Coffee outsold Cappuccino 2 to 1. Sales of Lattes were the same as sales of Drip Coffee. Fixed costs for the company are $15,000 and additional information follows:
  a. Calculate the sales mix percentage of all three products (based upon the number of cups).
b. Calculate the weighted average contribution margin for all three types of drinks.
c. Calculate the breakeven volume in number of cups.
d. Calculate the breakeven sales in dollars.

Kent Coffee Haus Sells Drip Coffee, Cappuccino, or Lattes