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a napa valley restaurateur plans to open an upscale wine bar where glass of wine is price at $25. her rent in a popular california

a napa valley restaurateur plans to open an upscale wine bar where glass of wine is price at $25. her rent in a popular california tourist area is steep;she must aldo pay high prices to advertise in trendy magazines and to hire people who are knowledgeable about wine. as a result of these and other factors, the wine bar's fixed monthly cost is $50,000. most of the variable costs are a function of wholesale wine prices and storage expenses, producing a unit margin of $10. if increased competition forces the restaurateur to cut her price by $2.50 per wine, what would be the breakeven volume?

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