Three entrepreneurs were looking to start a new brewpub near Sacramento, California, called Roseville Brewing Company (RBC). Brewpubs provide two products to customers-food from the restaurant segment and freshly brewed beer from the beer production segment. Both segments are typically in the same building, which allows customers to see the beer-brewing process. After months of research, the owners created a financial model that showed the following projections for the first year of operations: Sales Beer sales Food sales Other sales $ 781,200 1,074,150 Total sales Less cost of sales Gross margin Less marketing and administrative expenses Operating profit 97,650 $1,953,000 525,358 $1,427,642 1,125,430 $ 302,212 In the process of pursuing capital through private investors and financial institutions, RBC was approached with several questions. The following represents a sample of the more common questions asked: . What is the break-even point? . What sales dollars will be required to make $200,000? To make $500,000? . Is the product mix reasonable? (Beer tends to have a higher contribution margin ratio than food, and therefore product mix assumptions are critical to profit projections.) What happens to operating profit if the product mix shifts?