Three entrepreneurs were looking to start a new brewpub near sacramento, california, called roseville brewing company (rbc). bre
wpubs 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.
1 answer:
Answer:
A lot of information is missing as well as the requirements, so I looked for similar questions.
The requirements are:
<em>a. What is the break-even point in sales dollars for RBC? </em>
<em>b. What is the margin of safety for RBC? </em>
<em>c. What sales dollars would be required to achieve an operating profit of $250.000? $490.000?</em>
<em />
a) break even point = total fixed costs / contribution margin
- total fixed costs = $1,125,430
- contribution margin = $1,427,642 / $1,953,000 = 73%
break even point = $1,124,430 / 73% = $1,540,315
b) margin of safety = current sales - break even point = $1,953,000 - $1,540,315 = $412,685
c) operating profit = $250,000 ⇒ ($1,125,430 + $250,000) / 73% = $1,884,150.69
operating profit = $490,000 ⇒ ($1,125,430 + $490,000) / 73% = $2,212,917.81
You might be interested in
Answer:
CPI at the beginning of the year = 192.52
Explanation:
given data
nominal interest rate = 7 percent
real interest rate = 4 percent
CPI = 198.3
to find out
CPI at the beginning of the year
solution
we know that according to fisher equation
1 + r = ....................1
and for smaller values is equivalent to r
r = n - i .....................2
here r is real interest rate and n is nominal interest rate and i is inflation rate
so from equation 2
4 = 7 - inflation rate
inflation rate = 3 percent
so
Rate of inflation = (CPI at the end of the year - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year
put here value
3% = (198.3 - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year
CPI at the beginning of the year =
CPI at the beginning of the year = 192.52