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Sam's Sushi serves only a fixed-price lunch. The price of $9 and the variable cost of $5 per meal remain constant regardless of volume. Sam
Sam's Sushi serves only a fixed-price lunch. The price of $9 and the variable cost of $5 per meal remain constant regardless of volume. Sam can increase lunch volume by opening and staffing additional check-out lanes. Sam has three choices, as follows. 1 Lane 2 Lanes 3 Lanes Monthly Volume Range (Number of Meals) 0-5,000 5,001-8,000 8,001-10,000 Total Fixed Costs $ 23,000 30,000 38,400 Required: a. Calculate the break-even point(s). b-1. Calculate the profit (or loss) for each alternative, assuming Sam can sell all the meals he can serve. b-2. Should Sam operate at one, two, or three lanes? Req A Req B1 Calculate the break-even point 1 lane 2 lanes 3 lanes Break-Even Points meals meals meals Reg A Req B1 Req B2 Calculate the profit (or loss) for each alternative, assuming Sam can sell all the meals he can serve. (Loss amounts should be indicated with a minus sign.) Profit (Loss) 1 lane 2 lanes 3 lanes Req A Req B1 Req B2 Should Sam operate at one, two, or three lanes? Should Sam operate at one, two, or three lanes
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