Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 break-even point. You have decided to break down the sales for the club into four categories, they are as follows:

Category Estimated Sales Cost per unit Sales price per unit

Beer 32,000 $1.25 $1.75

Meals 8,000 $5.00 $12.00

Dessert/Wine 10,000 $0.75 $2.50

Lunches/Sandwiches 24,000 $3.50 $6.25

Your fixed cost is $1800 per month plus $2000 per month for entertainment.

a) What is your break even point?

b).What is the expected number of meals eaach day if you are open 30 days a month?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Night Audit Shenanigans With Winston No Longer Working At The Hotel Luna Is Dealing Without Days Off

Authors: Kentucky Elayne NightHawk

1st Edition

B0BYLVMSV7, 979-8361945702

More Books

Students also viewed these Accounting questions