Question
Georges Grill analyzes profitability of three operating units: restaurant, bar, and billiards room. Revenues, variable costs, and attributable fixed costs (which can be avoided if
Georges Grill analyzes profitability of three operating units: restaurant, bar, and billiards room. Revenues, variable costs, and attributable fixed costs (which can be avoided if the unit is eliminated) for each unit are as follows:
Restaurant | Bar | Billiards Room | |
---|---|---|---|
Revenue | $320,000 | $150,000 | $40,000 |
Variable costs | 120,000 | 35,000 | 10,000 |
Attributable fixed costs | 80,000 | 25,000 | 15,000 |
Required George, the owner, is considering converting the billiards area into an expanded bar area. Ignoring remodeling costs, by how much will the bar segment margin have to increase for the income at Georges Grill to be at least as high as it is now? Think about other considerations that George will want to consider before making the decision to eliminate the billiards unit to expand the bar area.
The bars segment margin would have to increase by at least $_______
I NEED THE ANSWER IN A DOLLAR AMOUNT!!!!! I HAVE FOUND THE PERCENTAGE BUT CAN NOT FIND THE CORRECT DOLLAR AMOUNT! PLEASE GIVE DOLLAR AMOUNT AND SHOW THE EQUATION!!
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