Ron Kedd recently opened Ron's Pub in the University District. Because of licensing restrictions, the only liquor he can sell is beer. The average price of beer at Ron's Pub is $5.50 per glass, and each glass costs Ron an average of $4.70. Ron has hired a bartender and waiter at $500 and $4,500 per month, respectively. His rent, utilities, and other fixed operating costs are $10,000 per month. Ron is considering selling hamburgers during the lunch hour. He feels that this will increase his daytime business, which is currently quite small. It will also allow him to be more competitive with other local bars that offer a wider variety of food and beverages. Ron would like to sell the hamburgers for $1.66 each in order to be attractive to customers. Ron will buy buns for $0.96 a dozen and ground beef for $1.88 per pound. Each pound of ground beef will make four hamburgers. Other ingredients will cost an average of $0.11 per hamburger. Ron will also need to hire a part-time cook at $1,300 per month. Other additional fixed costs will run about $230 a month. Read the requirements. Sales in grasses or beer) needed to earn target prone CU,Ovu peers Requirement 2. If Ron sells only beer, how many glasses of beer does he have to sell each month to make a monthly profit of 10% of sales? (Round your answer to the nearest whole number.) Sales (in glasses of beer) needed to earn target profit of 10% of sales: 60,000 beers Requirement 3. Suppose Ron decides to add hamburgers to his menu. How many hamburgers does he need to sell to break even on the hamburgers? Assume that there is no effect on beer sales. (Round your answer to the nearest whole number.) Sales (in number of hamburgers) needed to break even: 1,530 hamburgers Requirement 4. The main reason Ron wanted to add hamburgers was to attract more customers. Suppose that 3,000 extra customers per month came for lunch because of the availability of hamburgers and that each bought an average of 1 hamburger and 1.2 beers. Compute the added profit (or loss) generated by these extra customers. (Use a minus sign or parentheses for an added loss.) $ Contribution margin from additional hamburgers Contribution margin from additional beers 3,000 2,880 (1,530) 4,350 Less: Additional fixed expenses from offering hamburgers $ Added profit (or loss) generated by the extra customers Requirement 5. Ron was not sure how many new customers would be attracted by the hamburgers. Give Ron some advice about how many new customers would be needed to just break even on the new business if each new customer bought one hamburger and one beer. Include an assessment of the consequences of volume falling below or above this break-even point. Begin by calculating the number of customers needed to breakeven on the new business if each new customer bought one hamburger and one beer. (Round your answer to the nearest whole number.) Number of customers needed to breakeven on new business: customers