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AlAl EanonEanon recently opened a new doughnut shop near Cornwall, England. He sells doughnuts in boxes of four. The average price of a doughnut box
AlAl EanonEanon recently opened a new doughnut shop near Cornwall, England. He sells doughnuts in boxes of four. The average price of a doughnut box is $ and each box costs AlAl an average of $ $ He hired two assistants at a monthly salary of $ comma $ per assistant. His rent, utilities, and other fixed operating costs are $ comma $ per month.
AlAl is considering selling hamburgers along with doughnuts to further diversify his menu and attract more customers. The price of each hamburger will be $ $ AlAl will buy buns for $ $ per dozen and ground beef for $ $ per kg Each kg of ground beef will make eighteight hamburgers. Other ingredients will cost an average of $ $ per hamburger. AlAl will also need to hire a parttime cook at $ $ per month. Other additional fixed costs will run about $ $ a month.
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Part
Requirement If AlAl sells only doughnuts, then how many boxes of doughnuts does he have to sell every month to earn a profit of $ question mark $
Begin by determining the formula used to calculate the target sales volume in units.
Fixed expenses
Target profit
Target sales in units
Part
Now determine how many boxes AlAl has to sell every month to earn a profit of $ $Round your answer to the nearest whole number.
Sales in numbers of boxes of doughnuts needed to earn target profit:
boxes
Part
Requirement If AlAl sells only doughnuts, then how many boxes of doughnuts does he have to sell every month to earn a profit of on sales? Round your answer to the nearest whole number.
Sales in numbers of boxes of doughnuts needed to earn target profit of on sales:
boxes
Part
Requirement Suppose AlAl decides to add hamburgers to his menu. How many hamburgers does he need to sell to break even on the hamburgers? Assume that there is no effect on doughnut sales. Round your intermediate calculations to the nearest cent and round your answer to the nearest whole number.
Sales in number of hamburgers needed to break even:
hamburgers
Part
Requirement The main reason AlAl wanted to add hamburgers to his menu was to attract more customers. Suppose that comma extra customers came to his shop each month because of the availability of hamburgers and that each of them bought one hamburger and boxes of doughnuts on an average. Compute the added profitor loss generated by these extra customers. Use a minus sign or parentheses for an added loss.
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