Answered step by step
Verified Expert Solution
Question
1 Approved Answer
b) What is the expected number of meals each day if you are open 30 days a month? Problem S7.26 Question Help * As a
b) What is the expected number of meals each day if you are open 30 days a month?
Problem S7.26 Question Help * 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, the first calegory being beer. Your estimate of the beer sales is that 32,000 drinks wll be served. The selling price for each unit will average $150, the cost is $1.00. The second major category is meals, which you expedt to be 8,000 units with an average price of 512 50 and a cost of $5 00 The third major category is desserts and wine, of which you also expect to sell 10,000 units, but wih an average price of $2.75 per unit sold and a cost of $1.25 per unit The final category is lunches and inexpensive sandwiches, which you expect to total 24,000 units at an average price of $6.50 with a food cost of $3.25 Your fixed cost (ie, rent, utilities, and so on) is $2,000 per month plus $2,400 per month for entertainment a) For Red Rose, the monthly break even point in dollars-s per month round your response to two docma, places Enter your answer in the answer box and then click Check Answer part remaining
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started