Answer Happy

Problem 2 (14 points) An entrepreneur is considering opening a coffee shop in downtown Mayaguez. The building that he is considering will have a monthly lease payment of $2,000 and basic utility costs of $500 per month. Two employees will be hired at $9.00/hour each. Employees will work an average of 160 hours per month. The average revenue per customer is estimated at $6.00. The variable cost of serving each customer is estimated a. Calculate how many customers per month it will take for the coffee shop owner to at $2.00. breakeven. (6 pts) profit of $5,000? (4 pts) b. How many customers would need to be served per month to achieve a monthly C. Based on the results for the previous parts, would you recommend the entrepreneur to continue with the coffee shop? Explain. (4 pts) Bonus: draw the breakeven chart (3 pts.)