Question
PLEASE DO NOT COPY THE PROBLEM AND ANSWERS STRAIGHT FROM THE INTERNET. MY NUMBERS FOR THIS PROBLEM ARE DIFFERENT. Part 2: Break-Even Analysis (Multiproduct Model)
PLEASE DO NOT COPY THE PROBLEM AND ANSWERS STRAIGHT FROM THE INTERNET. MY NUMBERS FOR THIS PROBLEM ARE DIFFERENT.
Part 2: Break-Even Analysis (Multiproduct Model)
West Side Deli is a local family-owned restaurant that has built up a reputation of providing high quality lunches to its customers.Cassandra has been able to effective use the multiproduct Break-Even analysis to analyze the deli's current product offerings, and now wants to plan for a future addition: cupcakes!After reviewing the most recent product financials and projections for cupcakes, she has compiled the following information:
Sandwiches: selling price = $6.00 per sandwich; variable cost = $3.50 per sandwich; annual forecasted sales units = 30,000 sandwiches
Soups: selling price = $4.75 per soup; variable cost = $2.50 per soup; annual forecasted sales units = 24,000 soups
Drinks: selling price = $1.75 per drink; variable cost = $0.75 per drink; annual forecasted sales units = 37,000 drinks
Cupcakes: selling price = $4.00 per cupcake; variable cost = $2.00 per cupcake; annual forecasted sales units = 17,000 cupcakes
The overall monthly fixed costs are $4,250 per month.Note that West Side Deli operates Monday - Friday (i.e., 5 days per week) and is closed two weeks per year (i.e., 50 weeks per year).
Please use this information to solve the following problems.).Please also provide sample manual calculations as indicated below.
(a)Determine the annual revenueBreak-Even Point (BEP$) for West Side Deli.Please write out the manual calculations for at least one full product line (e.g., Cupcakes).Also, show the manual setup and work for the final BEP$ calculation.
b) Determine the daily revenueBreak-Even Point (BEP$) for West Side Deli.Please show the manual setup and work for the final BEP$ calculation. - (
(c)Determine the daily volumeBreak-Even Point (BEPx) for each menu item at West Side Deli.Please show the manual setup and work for at least one of the final BEPxcalculations (i.e., at least one menu item). - (15 points)
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