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3.14 (LO 1, 2, 3) Breakeven analysis; target operating income; CVP graph Wimpees Hamburger Stand sells the Super Tuesday Burger for $4.00. The variable cost
3.14 (LO 1, 2, 3) Breakeven analysis; target operating income; CVP graph Wimpees Hamburger Stand sells the Super Tuesday Burger for $4.00. The variable cost per hamburger is $2.25; total fixed cost per month is $38,500.
Required
- How many hamburgers must Wimpees sell per month to break even?
- How many hamburgers must Wimpees sell per month to make $10,500 in operating income?
- Prepare a CVP graph for Wimpees.
- Assuming that the most hamburgers Wimpees has ever sold in a month is 24,000, how likely is Wimpees to achieve a target operating income of $10,500? What actions could Wimpees manager take to increase the chances of reaching that target operating income?
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