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As a prospective owner of a club known as the Red Rose, you are interested in determining the volume of sales dollars necessary for the
As a prospective owner of a club known as the Red Rose, you are interested in determining the volume of sales dollars necessary for the coming year to reach the breakeven point. You have decided to break down the sales for the club into four categories, the first category being beer. Your estimate of the beer sales is that drinks will be served. The selling price for each unit will average SIS; the cost is The second major category is metals, which you expect to be units with an average price of S and a cast of S The third major category is desserts and wine, of which you also expect to sell units, but with an average price of S per unit sold and a cot of Si per unit. The final category is lunches and Inexpensive sandiwviches, whidt you exped is toad units at an average price of with a and inexors Your Pied cost lie, rent, wiltie, and so on i per month plus per month for
entertainment.
a What is your breakeven point in dollars per month?
What is the expected muniber of meals east day if you are open days a month?.
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