Question
Sami Liebig is the controller of Lone Star Steakhouse, a privately held corporation which runs steakhouses throughout the United States. Ms. Liebig is concerned about
- Sami Liebig is the controller of Lone Star Steakhouse, a privately held corporation which runs steakhouses throughout the United States. Ms. Liebig is concerned about the sales mix between the higher margin filet mignon and the lower margin sirloin steaks.
| Filet | Sirloin | |
| Sales | $250,000 | $160,000 |
| Variable Expenses | $150,000 | $120,000 |
| Segment Margin | $100,000 | $40,000 |
Lone Stars fixed expenses for the month are $80,000.
a. What is the companywide contribution margin ratio.
b. What is the breakeven point in sales dollars?
c. Assume that Sirloin sales increase by $50,000 in September, but Filet sales stay the same. What is the new breakeven point in sales dollars for Lone Star Steakhouse?
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Dcaa Audits Widespread Problems With Audit Quality Require Significant Reform: Gao 09 1009t
Authors: U. S. Government Accountability Office
1st Edition
1287232027, 978-1287232025
