Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Snow Bistro is open daily by serving breakfast, lunch and dinner. The bistro's fixed cost are 24,000 per month while variable costs are estimated

image text in transcribed

1. Snow Bistro is open daily by serving breakfast, lunch and dinner. The bistro's fixed cost are 24,000 per month while variable costs are estimated at 8 per meal. The average total bill is 12 per customer. a) Calculate the number of meals that must be serve in order to earn a profit of 8,000 per month. b) Calculate the break-even point in meals. c) How much sales revenue must the bistro make to achieve break-even point? d) Assume that fixed cost increase to 30,000. How many additional meals must be served if the bistro wishes to earn the same profit (8,000) ? e) If the fixed cost is 30,000 per month and the bistro wants to achieve an annual profit of 140,000, how many meals must the bistro sell each month

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions