Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you

image text in transcribed

As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Soft Drink Selling Price $1.00 Variable Cost $0.70 % of Revenue 24 Wine $1.80 $1.00 26 Coffee Candy $1.00 $0.75 $0.35 29 $0.35 21 Last year's manager, Jim Freeland, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labour cost to be $280.00 (5 booths with 3 people each). Even if nothing is sold, your labour cost will be $280.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $80.00 for each booth per night, is also a fixed cost. a) What is break-even volume per evening performance? Based on the information available, the daily break-even point in dollars for the St. Cloud Theatre Company = dollars (round your response to two decimal places).

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

Management

Authors: Stephen P Robbins, Mary Coulter

11th Edition

9780273752776, 132163845, 273752774, 978-0132163842

More Books

Students also viewed these General Management questions