Sales

Beer sales $(40\%$ of total sales$)$ $ $841,200$

Food sales $(55\%$ of total sales$)1,156,650$

Other sales $(5\%$ of total sales$)105,150$

Total sales $ $2,103,000$

Variable Costs

Beer $(15\%$ of beer sales$)$ $ $126,180$

Food $(35\%$ of food sales$)404,828$

Other $(33\%$ of other sales$)34,700$

Wages of employees $(25\%$ of sales$)525,750$

Supplies $(1\%$ of sales$)21,030$

Utilities $(3\%$ of sales$)58,890$

Other: credit card, miscellaneous $(2\%$ of sales$)39,260$

Total variable costs $1,210,638$

Contribution margin $ $892,362$

Fixed Costs

Salaries: manager, chef, brewer $ $109,500$

Maintenance $31,500$

Advertising $21,500$

Other: cleaning, menus, miscellaneous $41,500$

Insurance and accounting $47,500$

Property taxes $25,500$

Depreciation $101,500$

Debt service $($interest on debt$)124,500$

Total fixed costs $503,000$

Operating profit $ $389,362$

Required:

Perform a sensitivity analysis by answering the following questions:

What is the break$-$even point in sales dollars for RBC$?$

What is the margin of safety for RBC$?$

What sales dollars would be required to achieve an operating profit of $$350,000?$ $$650,000?$