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3. The Soda Palace is a gourmet soda shop offering specialty sodas and drinks. Customers may consume the drinks in store or take out. The
3. The Soda Palace is a gourmet soda shop offering specialty sodas and drinks. Customers may consume the drinks in store or take out. The price of a drink is $2.00, but the owner only sells drinks in six-packs. The company has fixed costs including kegs, vats, delivery trucks and rent for the storefront. These fixed costs total out to $20,000. The variable costs of the drinks: a. Labor: $0.50 / drink b. Ingredients: $0.35 / drink c. Utilities: $0.65 / drink Calculate the per CTO per six pack: Calculate the break-even point of production in six packs: 3. The Soda Palace is a gourmet soda shop offering specialty sodas and drinks. Customers may consume the drinks in store or take out. The price of a drink is $2.00, but the owner only sells drinks in six-packs. The company has fixed costs including kegs, vats, delivery trucks and rent for the storefront. These fixed costs total out to $20,000. The variable costs of the drinks: a. Labor: $0.50 / drink b. Ingredients: $0.35 / drink c. Utilities: $0.65 / drink Calculate the per CTO per six pack: Calculate the break-even point of production in six packs
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