Problem 3-49 Extensions of the CVP Model-Semifixed (Step) Costs (LO 3-4)

Sam's Sushi serves only a fixed-price lunch. The price of $10 and the variable cost of $4 per meal remain constant regardless of volume. Sam can increase lunch volume by opening and staffing additional check-out lanes. Sam has three choices:

	Monthly Volume Range (Number of Meals)	Total Fixed Costs
1 Lane	05,000	$	33,000
2 Lanes	5,0018,000		39,000
3 Lanes	8,00110,000		52,500

Required:

a. Calculate the break-even point(s) for each lane

b. Explain your calculation