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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
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)
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