Rhianna is in charge of a facility which produces and sells roast coffee. Her expense sheet can be seen below.ItemCostRent$23,280/mo.Salaries$45,860/wk.Raw coffee$0.51/lb.Insurance$19,750/mo.Advertising$22,110/mo.Coffee roasting$0.32/lbRhianna’s coffee sells for $2.89 per pound. How much coffee must her facility sell each month to break even, to the nearest hundred pounds?

The variable cost is $0.51 + $0.32 = $0.83 per pound, so each pound sold contributes $2.89 − $0.83 = $2.06 toward fixed costs. Using 4 weeks per month, monthly fixed costs are $23,280 + $19,750 + $22,110 + 4($45,860) = $248,580. Break-even sales are $248,580 ÷ $2.06 ≈ 120,670 pounds, which rounds to 120,700 pounds, choice A.

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