Arestaurant averages ales of $120,000 when serving 20,000 guests. the restaurant's variable costs when 20,000 is $90,000. the contribution margin per guest is $1.50. fixed monthly costs are $50,000. what is the restaurant's monthly breakeven point in sales dollars?

Restaurant's monthly breakeven point in sales is $31333.

Step-by-step explanation:

Since we have given that

Number of guests = 20,000

Average sales = $120,000

Contribution margin per guest = $1.50

Let the number of sales be 'x'.

Cost per sales would be

Margin contributed by 2000 guests would be

So, Revenue function would be

Fixed monthly cost = $ 50,000

Variable cost for 20000 guests = $90000

So, Variable cost per sale would be

So, Cost function would be

Breakeven point would be

Cost function = Revenue function

Hence, Restaurant's monthly breakeven point in sales is $31333.

Step-by-step explanation:

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