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Q9. A restaurant offers two items: steak and shake, at the price and variable costs as below. The restaurant has a monthly fixed cost
Q9. A restaurant offers two items: steak and shake, at the price and variable costs as below. The restaurant has a monthly fixed cost of $3,000, and sells on average 60 steaks and 40 shakes every month. Answer the following questions. Item Price VC Sales Steak Shake $5 $15 $5 60 $3 40 a) What is the weighted CM of the two items? b) What is the breakeven sales revenue? Text c) Assuming no tax, what is the desired sales revenue in order to generate a net income of $5,000?
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