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An upscale country club provides food services to their members at a discounted price. Avisory board of the club is interested in determining the break-even
An upscale country club provides food services to their members at a discounted price. Avisory board of the club is interested in determining the break-even point of their food business so the club does not loose money. They have decided to break down the food sales for the club into four categories. The first category is beer and the estimate is to be able to sale 32,000 beer drinks. The selling price for each unit will average $1.75; the cost is $0.75 per unit. The second category is meal, which is expected to be 11,000 units with an average price of $12.00 per unit and a cost of $5.00 per unit. The third category is wine, of which they expect to sell 10,000 units, with an average price of $2.75 per unit and a cost of $1.25 per unit. The last category is desserts, which they expect to sell 24,000 units at an average price of $6.25 per unit with a cost of $3.25 per unit. Fixed cost (i.e., maintenance, utilities, etc.) is determined to be $1,800 per month plus $2,400 per month for rental equipments. A) Therefore, the monthly break-even point for the food service in dollars = $ decimal places). per month (round your response to two b) If the food service is open 30 days per month, then the expected number of "meals" that need to be sold each day to break-even = meals per day (round your response to one decimal place)
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