BREAK EVEN ANALYSIS PROBLEM:

NEW ENGLAND SEAFOOD RESTAURANT HAS FIXED COSTS OF?

FIXED COSTS ARE:

RENT $25,000

INSURANCE 5,000

UTILITIES 10,000

COMMUNICATION 5,000

DEPRECIATION 10,000

TAXES 5,000

CORE LABOR 15,000

REPAIRS AND MAINTENANCE 5,000

COST OF FOOD 12,000

COST OF WINE 4,000

LINEN EXPENSE 2,000

SALES PRICE IS DETERMINED BY WHAT THE RESTAURANT WANTS TO MARK UP THE BASIC COST OF PREPARING THE ITEM.

50% OF ALL SALES PER MONTH ARE CHAR GRILLED PORTERHOUSE STEAKS THAT SELL FOR $20.00 A LA CARTE. THE STEAKS HAVE A COST OF $10.OO EACH. WHAT IS THE FOOD COST % FOR MARK UP? 10.00 DIVIDED BY .50= $20.00

25% OF ALL SALES ARE WHOLE BAKED LOBSTER THAT SELL FOR $32.00 PER A LA CARTE THAT HAVE A COST OF $16.00. 50% MARK UP AS WELL.

25% OF ALL SALES ARE STEAMED ALASKAN CRAB LEGS THAT ARE SOLD FOR $38.00 PER ORDER THAT COST $18.00. DIVIDED BY .48= 38.00

ALL STEAKS ARE SOLD WITH A JUMBO BAKED POTATO WITH ALL CONDIMENTS FOR $2.00 ADDITIONAL THAT HAS A FOOD COST OF $1.00

ALL LOBSTER AND CRAB ORDERS HAVE RICE PILAF WITH SAUTED WILD MUSHROOMS AT $3.00 PER ORDER THAT HAVE A FOOD COST OF $1.00

ALL COME WITH A GLASS OF WINE SOLD FOR $3.00 PER GLASS THAT HAS A COST OF 1.00.

HOW MANY ORDERS OF LOBSTER HAVE TO BE SOLD___________________

HOW MANY ORDERS OF STEAK_____________________________________

HOW MANY ORDERS OF CRAB LEGS____________________________________________

HOW MANY BAKED POTATOES_____________________________________

HOW MANY ORDERS OF RICE PILAF ____________________________________

HOW MANY GLASSES OF WINE__________________________