1. What do you know about bottleneck analysis? Give an explanation.

2. Explain the difference between design capacity and effective capacity.

3. A student is preparing a business startup tavern as follows:

Types of Drinks ; Sales price per unit ; Variable Cost ; Estimated sales per month
    Soft drinks                $ 1                                   $ 0.60                      750
    Coffee                     $ 1.75                                $ 0.50                      900
    Tea                            $ 1                                   $ 0.30                       750
    Fruit Ice                   $ 1.50                               $ 0.50                       600

Costs are incurred in the amount of $ 300 per month. Determine the BEP!