Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I included the formula they want me to use As a prospective owner of a club known as the Red Rose, you are interested in

I included the formula they want me to use
image text in transcribed
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 month to reach the break-even point. You have decided to break down the sales for the club into four categories, the first category being beer. Your estimate of the beer sales is that 36,000 drinks will be served. The selling price for each unit will average $1.75; the cost is $0.75. The second major category is meals, which you expect to be 12,000 units with an average price of $12.00 and a cost of $6.00. The third major category is desserts and wine, of which you also expect to sell 10,000 units, but with an average price of $2.25 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 $6.00 with a food cost of $3.50. Your fixed cost (i.e., rent, utilities, and so on) is $1,600 per month plus $2,200 per month for entertainment. a) For Red Rose, the monthly break-even point in dollars = $ per month (round your response to two decimal places). That's incorrect

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Rethinking Prestige Branding: Secrets Of The Ueber-Brands

Authors: Wolfgang Schaefer, J P Kuehlwein

1st Edition

0749470038, 9780749470036

More Books

Students also viewed these General Management questions