Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q. the BEP = Total Fixed Costs / (Average Order Price - Variable Cost per Order). Using this formula, what is the breakeven point? In

Q. the BEP = Total Fixed Costs / (Average Order Price - Variable Cost per Order). Using this formula, what is the breakeven point? In other words, how many orders would need to be sold before the business starts making a profit given the current price and cost structure?Here's the information you need to do the bistro's BEP analysis:

Current Orders per Month - 750

Average Order Price - $11.00

Variable Cost per Order - $5.00

Rent per Month - $2,000.00

Utilities per Month - $400.00

Labor per Month - $3,000.00

Calculate the BEP using the numbers and formulas above. Hint: total fixed costs in this case are the sum of rent, utilities and labor.

Q. Give three recommendations for changes to the 4 P's.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advertising & IMC Principles & Practice

Authors: Sandra Moriarty, Nancy Mitchell, William Wells

9th Edition

9780132998208, 0132163640, 132998203, 978-0132163644

More Books

Students also viewed these Marketing questions