Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Hi, I need help with the attached. I have already figured out A, I only need help with B. Thanks! As a prospective owner of

Hi, I need help with the attached. I have already figured out A, I only need help with B. Thanks!

image text in transcribed 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, they are as follows: Beer 32000 Price per unit $ 2.00 meals 10000 $ 12.50 $ 125,000.00 deserts/wine 8000 $ 2.75 $ 22,000.00 lunches 20000 $ 6.25 Total Revenue from sales $ 125,000.00 $ 336,000.00 sales (units) sales(units) 32000 Cost per unit $ 0.75 $ 64,000.00 $ 24,000.00 10000 $ 5.00 $ 50,000.00 8000 $ 1.00 $ 20000 $ 3.75 $ 75,000.00 Total costs of goods sold 8,000.00 $ 157,000.00 A.) For Red Rose the monthly break-even point in dollars = $6,716.13 (completed) B.) If Red Rose is open 30 days per month, then the expected number of meals (units) that need to be sold each day = ___ meals per day. (Round answer to one decimal place) 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, they are as follows: Beer 32000 Price per unit $ 2.00 meals 10000 $ 12.50 $ 125,000.00 deserts/wine 8000 $ 2.75 $ 22,000.00 lunches 20000 $ 6.25 Total Revenue from sales $ 125,000.00 $ 336,000.00 sales (units) sales(units) 32000 Cost per unit $ 0.75 $ 64,000.00 $ 24,000.00 10000 $ 5.00 $ 50,000.00 8000 $ 1.00 $ 20000 $ 3.75 $ 75,000.00 Total costs of goods sold Fixed Cost: Entertainment cost per month Total Cost per month 8,000.00 $ 157,000.00 1600 2000 3600 A.) For Red Rose the monthly break-even point in dollars = $6,716.13 (completed) B.) If Red Rose is open 30 days per month, then the expected number of meals (units) that need to be sold each day = ___ meals per day. (Round answer to one decimal place)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Introduction To Health Care Management

Authors: Sharon B. Buchbinder, Nancy H. Shanks

3rd Edition

9781284081015

Students also viewed these Accounting questions