Question
7-Joe Kunkle has decided to quit his $120,000 a year job and has a net $500,000 from a stock option payout. His passion is microbrewing
7-Joe Kunkle has decided to quit his $120,000 a year job and has a net $500,000 from a stock option payout. His passion is microbrewing and wants to open Joe's Brews in his neighborhood. The equipment could be resold for $75,000 if he abandons the venture. The initial build-out of store is $75,000 of equipment only and the landlord will make all other improvements. The owner believes that the selling price per unit is $18 and the variable costs will average $9.50. If the annual fixed costs are $82,000, then how many beers are need to break-even for Joe's Brews and provide the same wage replacement as his former job assuming a 360 day work year?
Group of answer choices
a-83 beers per day (rounded)
b-64 beers per day (rounded)
c-42 beers per day (rounded)
d-None of the above.
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