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Please explain how you got the answers. Break-even Analysis DEUTOU Lounge has two facilities in Paris. One only sells burgers while the other only serves
Please explain how you got the answers.
Break-even Analysis "DEUTOU Lounge" has two facilities in Paris. One only sells burgers while the other only serves cocktails with alcohol. Burger's price is 12 and cocktail's price is 8 both prices after VAT. The co of making is 25% of burgers' selling price and 35% of cocktails selling price, before VAT. Human cost is similar in both facilities, formed by : - 1 manager 2,000 per month before social charges. - 2 assistant 1,500 each per month before social charges. - 4 waitresses 1,200 each per month before social charges. Rent is after VAT: Burgers Restaurant 45,000 per semester - Cocktails Bar 20,000 per quarter Additional expenses: OCT 13 W Additional expenses: Advertising 200 per week Security and Cleaning is 10% of rent ABS Extra Assignment - OPM Now the Chief Operations Officer wants to digitalize the Business Model, meaning: Design of a Website and Apps for Mac OS and Android 15,000 after VAT - No more facilities, but one single establishment costing 4,000 monthly before VAT - In addition to the two former products, a new product will be sold, a menu made of burger and cocktail at 15 before VAT The Human Resources will be merged, however they will be no more waitresses. In addition, the business will work exclusively through UBER Eat App, they are charging OCE 2 113 W earch burger and cocktail at 15 before VAT - The Human Resources will be merged, however they will be no more waitresses. In addition, the business will work exclusively through UBER Eat App, they are charging 30% on the price before VAT. Assuming VAT in France is 20% except for fast food and restaurant, which is 10%. But it remains at 20% for alcohol. And Social charges is 38%. 1. Find the break-even point in cost and volume for each facilities. 2. Plot your results on a graph Assuming, under UBER Eat App, the expected sales in unit for Burgers and Cocktails will be equal to the double of the break-even point in units of each facility. Moreover, the expected quantity sold of Menus will be equal to 50% of the two other products weighted average quantity 3. Find the break-even point in cost for the new establishment, 4. Compare both business models. 2 OCT 113 W Step by Step Solution
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