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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 month 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 $; the cost is $ The second major category is meals, which you expect to be units with an average price of $ and a cost of $ The third major category is desserts and wine, of which you also expect to sell units, but with an average price of $ per unit sold and a cost of $ per unit. The final category is lunches and inexpensive sandwiches, which you expect to total units at an average price of $ with a food cost of $ Your fixed cost ie rent, utilities, and so on is $ per month plus $ per month for entertainment.
a For Red Rose, the monthly breakeven point in dollars dollars per month round your response to two decimal places
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