sanchezr7187
05.07.2020 •
Business
As a prospective owner of a club known as the Red Rose, you are interested in determining the volume of sales dollars necessary for the coming year to reach the break-even point. You have decided to break down the sales for the club into four categories, the first category being beer. Your estimate of the beer sales is that 30,000 drinks will be served. The selling price for each unit will average $1.50; the cost is $.75. The second major category is meals, which you expect to be 10,000 units with an average price of $10.00 and a cost of $5.00. The third major category is desserts and wine, of which you also expect to sell 10,000 units, but with an average price of $2.50 per unit sold and a cost of $1.00 per unit. The final category is lunches and inexpensive sandwiches, which you expect to total 20,000 units at an average price of $6.25 with a food cost of $3.25. Your fixed cost (i.e., rent, utilities, and so on) is $1,800 per month plus $2,000 per month for entertainment. a) What is your break
Solved
Show answers
More tips
- F Food and Cooking Delicious and Simple Fillings for Pies...
- H Health and Medicine How to Help Men Gain Weight?...
- A Auto and Moto Discovering the Leader: What is the Most Expensive Car in the World?...
- H Health and Medicine Hangover: How to Get Rid of It Quickly?...
- S Style and Beauty How to Choose the Right Fur Coat and Avoid Regrets?...
- C Computers and Internet How to Create a Folder on Your iPhone?...
- G Goods and services How to sew a ribbon: Tips for beginners...
- F Food and Cooking How to Make Mayonnaise at Home? Secrets of Homemade Mayonnaise...
- C Computers and Internet Which Phone is Best for Internet Surfing?...
- F Food and Cooking Everything You Need to Know About Pasta...
Answers on questions: Business
- B Business In an effort to stabilize the banking sector and keep banks lending, from October 2008 to September 2009, the Fed...
- H Health True or False: Organisms can t reproduce using mitosis. Help guys...
- E English Which themes were typical of the literature written in seventeenth- and eighteenth-century america? select all that apply. faithfulness to god respect for cultural diversity respect...
- M Mathematics Hey i need solving these and not just the answer i really would like to know how...
Ответ:
break even point = 3,577 bundles which include:
10,731 beers3,577 meals3,577 desserts and wine7,154 lunches and sandwichesExplanation:
estimated beer sales 30,000
contribution margin per beer = $0.75
estimated meals sales 10,000
contribution margin per meal $5
estimated desserts and wine sales 10,000
contribution margin per dessert and wine $1.50
estimated lunches and sandwiches sales 20,000
contribution margin per lunch and sandwich sales $2
we can make 10,000 bundles consisting of:
3 beer sales = $2.25
1 meal sale = $5
1 dessert and wine sale = $1.50
2 lunches and sandwiches = $4
contribution margin per bundle = $12.75
total fixed costs = $3,800 x 12 months = $45,600
break even point (in bundles) = total fixed costs /contribution margin per bundle = $45,600 / $12.75 = 3,576.47 ≈ 3,577 bundles
Ответ:
they work in some type of way