Mooney's Beanery is a locally owned specialty food product company in Northeast Ohio that has been in existence for over 30 years. Its products include flavored coffees and teas, dips, dressings, sauces, and seasonings. Each of the shows that Mooney's attends has a different booth rental fee. Booth rental fees can range from $700 to $7,000 for each show. Assume that the booth rental fee at the Great Big Home + Garden Show is $2,300 for the five-day show and that Mooney's has an average contribution margin ratio of 20% on its products. (Click the icon to view additional information.) Read the requirements. Requirement 1. How much in sales does Mooney's need to break even on the Great Big Home + Garden Show, assuming that the booth rental fee is the only fixed cost of the show? Identify the formula and then compute the breakeven point in dollars. (Complete all answer boxes. Enter a "0" for any zero amounts. Enter ratios, if any, as a decimal to two places, X.XX.) Breakeven sales + = in dollars + ) = Requirement 2. The Great Big Home + Garden Show runs for five days. How much, on average, must Mooney's sell each day of the show to break even? Mooney's must sell each day to break even. Requirement 3. Assume that 137,500 people visit the home and garden show each year spread evenly throughout the five-day period. If 4% of the attendees purchase from Mooney's at the show, how much must each customer purchase from Mooney's for the company to break even on the booth rental fee? Identify the formula and then compute the purchase amount needed per customer. (Round your answer to the nearest cent.) . Purchase amount per customer Requirement 4. Assume now that Mooney's wants to make a target profit of $3,500 for the Great Big Home + Garden Show. What sales volume will allow Mooney's to achieve this target profit? Mooney's sales volume must be to achieve the target profit. More info The company attends a variety of craft and other shows throughout the year and sets up a booth at each show to sell its products. Free samples are offered to show attendees, and the Mooney's booth is always packed. Shows that Mooney's attends include the Yankee Peddler Festival in Canal Fulton, Ohio, the Great Big Home + Garden Show at the Cleveland 1-X Center, and the Ohio Mart at Stan Hywet in Akron, Ohio. Mooney's also sells its products online via its website. Print Done Requirements 1. How much in sales does Mooney's need to break even on the Great Big Home + Garden Show, assuming that the booth rental fee is the only fixed cost of the show? 2. The Great Big Home + Garden Show runs for five days. How much, on average, must Mooney's sell each day of the show to break even? 3. Assume that 137,500 people visit the home and garden show each year spread evenly throughout the five-day period. If 4% of the attendees purchase from Mooney's at the show, how much must each customer purchase from Mooney's for the company to break even on the booth rental fee? 4. Assume now that Mooney's wants to make a target profit of $3,500 for the Great Big Home + Garden Show. What sales volume will allow Mooney's to achieve this target profit
