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Coffee Klatch is an espresso stand in a downtown office building. The average selling price of...

Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.36. The average fixed expense per month is $1,300. An average of 2,100 cups are sold each month. What is the break-even sales dollars?

a. $1,300

b. $1,715

c. $1,788

d. $3,129

1.49 (x) – 0.36 (x) – 1300 = 0

x = 1150

1150 x 1.13 = 1300

Breakeven sales = 1300. Why is it not 1300??

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