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A New-Edge restaurant in town provides six-sense experiential dining experience to their customers. The owner of the restaurant is interested to understand the break-even point
A New-Edge restaurant in town provides six-sense experiential dining experience to their customers. The owner of the restaurant is interested to understand the break-even point of the business. The following table provides the necessary information regarding their business: Variable Cost % of Revenue $0.65 Items Soft Drink Burger lea Dessert Selling Price $1.25 $2.00 $1.00 $1.00 $0.95 $0.30 $0.35 31 The previous owner has advised the new owner to be sure to add 10% of variable cost as a waste allowance for all categories (.e., increase the variable cost by 10%). Labor cost is estimated to be $300.00 (5 equipments with 3 people each) fixed per day. Even if nothing is sold, the labor cost will be $300.00, so it is considered to be a fixed cost. Equipment rental, which is a regular cost at $50.00 for each equipment per day, is also a fixed cost. a) Based on the information available, per day break-even point in dollars for the restaurant = $ (round your response to two decimal places). b) Based on the given information, per day break-even point (in numbers) for Burgers = burgers (round your response to one decimal place)
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