Question:

A. Calculate the breakeven number of additional customers for each added hour of operation up to 4 am.

B. Calculate the breakeven number of additional customers for an entire year, assuming (i) closing time of 4 am and then (ii) your recommended closing time if it differs from 4 am.

C. Find the safety margin on new customers for the year.

[Hint: For the per-year analysis, remember to account for the cost of the security upgrade. Use straight-line depreciation as a measure of the fixed cost of the security upgrade, and then add the cost of overtime labor for the additional hours of business for each of the 360 business days in the year.]

Given:

Attachment 1 Attachment 2 Purchases and Purchase Costs for Randomly Selected Customers Customers per Hour During Experimental Period Tari randomly selectod 69 customen involices - 30 fom dey custsmerh, and 30 from evening cuntomers. mase a purchase of 536.14 , and the aloohol purchused cout 326.58 io sasck:) Gon topin to 4 a am. Each dosing time was tesiled for teo woels. The tatle betiow shows the awerope Aur colowing thewe was 10pm. The iast celume on the right (4 am dosing tima) was wasd to find "eusumen per hour for the latie in heachmen 3 Attachment 3 Marginal Revenue and Marginal Cost Analysis 1 The marginal revenue (MR) for the hour is the contribution margin per customer ($11.00) multiplied by the number of customers. Note that if the marginal revenue is calculated in this way, it already takes into account the alcohol cost. 2 The marginal cost (MC) for the hour is the wages for two clerks: $15 per hour before midnight, and $22.50 per hour after midnight. 3 There are 360 days in one business year