The Coffee Express Has Computed Its Fixed Costs to Be

Multiple Choice

The Coffee Express has computed its fixed costs to be $.27 for every cup of coffee it sells given annual sales of 739,000 cups. The sales price is $.99 per cup while the variable cost per cup is $.12. How many cups of coffee must it sell to break even on a cash basis?

A) 229,345
B) 146,472
C) 251,910
D) 167,630
E) 184,806