Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2004, Chipotle Mexican Grill opened its first restaurant on 1644 E. Evans in Seattle, location of former Dolly Madison ice cream. Chipotle sells one

In 2004, Chipotle Mexican Grill opened its first restaurant on 1644 E. Evans in Seattle, location of former Dolly Madison ice cream. Chipotle sells one burrito for every three tacos. The average selling prices are $6.5 per burrito and $2 per taco. The contribution margin ratio is 40% on both burritos and tacos. The weekly average fixed cost per restaurant is $1,500.

Assuming all revenues and costs come from the sale of burritos and tacos and assuming a constant mix of products, what is the weekly breakeven point measured by burritos and tacos? Show the number of burritos and the number of tacos.

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

Financial Shenanigans

Authors: Howard Schilit

2nd Edition

0071386262, 9780071386265

More Books

Students also viewed these Accounting questions

Question

3. Use the childs name.

Answered: 1 week ago

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago