Thank you for visiting Central Park Café sells coffee and tea to customers Jonathan JJ the café owner is trying to analyze how many cups of coffee and cups. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
Final answer:
Jonathan makes a profit of $2 per cup of coffee sold. To cover his fixed costs of $500, he needs to sell 250 cups of coffee to break even.
Explanation:
To determine the breakeven point with only selling coffee, we must first calculate the net profit from selling a cup of coffee. From the information given, each cup of coffee costs $1 to make and sells for $3, meaning Jonathan makes $2 profit per cup of coffee sold. We need to divide his fixed costs, in this case the $500 it takes to run the café, by this profit per cup to find out how many cups he needs to sell to cover these costs.
The breakeven point therefore is $500 ÷ $2 = 250 cups of coffee.
Therefore, the correct answer is a) 250.00 Cups.
Learn more about Breakeven Point here:
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