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Last year, the company sold 50,000 units and had the below sales and cost figures. Adding Food - Total sales in the number of units
Last year, the company sold 50,000 units and had the below sales and cost figures. Adding Food - Total sales in the number of units would increase 25% (if added) - The average sales price per unit would increase from the current $3 oo to $5.00 (if added) - The variable cost per unit would increase to $2.50 per unit to account for the added cost (if added) - There would be an increase in fixed costs of $25,000 for advertising (ff added) Adding Drive Up Window - This alternative is exclusive of Adding Food Option I - Total sales in the number of units would go up 13090 from last year. - The construction of the drive up window would increase fixed costs by 5130,000 - which represents 1x construction 8 installation costs. - Drive Up Window would allow an increase in average sales to 53,20 cup of coffee and varable cost per unit would remain the same at so.ab per unit. 1.) Compute the sales units required if the company wishes to generate a Target income Before Taxes of \$100,000 for all 3 situations
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