Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In your initial post, provide your answers to these questions: 1. Imagine that our fixed costs are $650,000 per year. If our variable cost is

image text in transcribed

In your initial post, provide your answers to these questions: 1. Imagine that our fixed costs are $650,000 per year. If our variable cost is $80.00 per plate and the sales forecast was for 10,000 plates, what must the price be to breakeven? 2. For this question, assume that fixed costs are $700,150 per year, variable cost is $85.00 per plate and our price is $140.00 per plate. a) How many plates must we serve to breakeven? b) If our average event is for 500 plates, how many events will it take? 3. Now imagine that we have capacity for 1 event per week of 300 plates. Fixed costs are $800,000, variable costs are $80 per plate, and we've set the price at $130.00 per plate. a) Assuming we host at 100% capacity, will we earn a profit or experience a loss? b) What amount? For a successful initial post, I expect to see answers to questions 1, 2a, 2b, 3a, 3b identified that way. (35 points)

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

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

Multinational Financial Management

Authors: R M Srivastava

1st Edition

8174466703, 9788174466709

More Books

Students also viewed these Finance questions

Question

differentiate the function ( x + 1 ) / ( x ^ 3 + x - 6 )

Answered: 1 week ago

Question

4. Explain how to price managerial and professional jobs.pg 87

Answered: 1 week ago