Question
Chipotle Multi-product Breakeven Analysis A Chipotle store is considering doing a local ad mailing that will cost $500. They predict the campaign will cause burrito
Chipotle Multi-product Breakeven Analysis
A Chipotle store is considering doing a local ad mailing that will cost $500. They predict the campaign will cause burrito sales to increase by 5% and taco sales by 2% in the next month.
Using the below monthly sales data, show how much will the local Chipotle make or lose on the $500 ad campaign. Show me mathematically how you got to your answer. (4 points)
Chipotle Monthly Sales | |||||||
Product | Monthly Servings Sold | Avg. Price per Serving | Avg. Cost per Serving |
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Burrito | 1200 | $10.00 | $3.50 |
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Tacos | 1000 | $9.00 | $4.00 |
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Bowl | 950 | $8.50 | $3.00 |
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