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As manager of the Best Drinks Company in Hayward, you would like to sell drinks at a booth during the major celebration in the Hayward's
As manager of the Best Drinks Company in Hayward, you would like to sell drinks at a booth during the major celebration in the Hayward's Central Park. The following table provides information about the drinks that you will be selling: Items % of Sales Soft Drinks Wine Coffee Tea Water Price per unit, $ Var. cost per unit, $ 1.00 0.35 3.75 1.76 1.75 0.65 1.50 0.58 1.00 0.28 0.15 0.30 0.30 0.10 0.15 You estimate labor cost to be $300 (2 people, $150 dollars each per day at the booth). Even if nothing is sold, your labor cost will be still $300, so you decide to consider this a fixed cost. Booth rental, $200, is also a fixed cost. Apply the total fixed cost for your break-even analysis, and do not annualize the fixed cost. Questions What is the break-even volume (in dollars) for selling drinks at the booth? Show your calculations manually or use Excel. How much would you expect to sell at the break-even point? Present and explain your calculations
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