As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The fol- lowing table provides the information you have been able to put together thus far: Variable Cost % of Revenue Item Selling Price Soft drink $1.00

$.65 25 Wine 1.75 .95 25 Coffee 1.00 .30 30 Candy 1.00 .30 20 Last year's manager, Jim Freeland, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $250.00

(5 booths with 2 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a con- tractual cost at $50.00 for each booth per night, is also a fixed cost.

a. What is break-even volume per evening performance?

b. How much wine would you expect to sell at the break-even point? ..