1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Arisa [49]
2 years ago
8

As a prospective owner of a club known as the Red Rose, you are interested in determining the volume of sales dollars necessary

for the coming year to reach the break-even point. You have decided to break down the sales for the club into four categories. Your best estimate of the beer sales is that 30,000 drinks will be served. The selling price for each unit will average $1.50. The cost is $0.75. The second major category is meals, which you expect to be 10,000 units with an average price of $10.00 and a cost of $5.00. The third major category is desserts and wine, of which you also expect to sell 10,000 units but with an average price of $2.50 per unit sold and a cost of $1.00 per unit. The final category is lunches and inexpensive sandwiches. You expect to sell 20,000 units at an average price of $6.25 and an average cost of $3.25. Your fixed cost (i.e. rent , utilities, and so on) is $1,800 per month plus $2,000 per month for entertainment. Using this information, the break-even point in dollars per month is $ . Round your answer to the nearest dollar. Do not use a comma thousand separator. Do not enter a $ in your answer.
Business
1 answer:
VladimirAG [237]2 years ago
5 0

Answer:

Red Rose

Using this information, the break-even point in dollars per month is $ 16092.

Explanation:

a) Data and Calculations:

                                Beer Sales     Meals     Desserts/Wine   Lunches

Sales unit                   30,000       10,000         10,000            20,000

Selling price per unit    $1.50       $10.00          $2.50              $6.25

Cost price per unit      $0.75        $5.00            $1.00              $3.25

Contribution per unit  $0.75        $5.00            $1.50              $3.00

Total Sales revenue  45,000    100,000         25,000           125,000 $295,000

Total variable cost    22,500     50,000           10,000            65,000  $147,500;

per month = $12,292 ($147,500/12)

Total contribution = $147,500

Fixed cost = $3,800 ($1,800 + $2,000) per month

Total fixed cost per year = $45,600 ($3,800 * 12)

Break-even in sales dollars per month = Total costs = Fixed cost + Variable cost per month

= $3,800 + $12,292 ($147,500/12)

= $16,092

You might be interested in
You have decided to use Holland's Typology of Personality and Congruent Occupations to help your friends recognize which jobs th
Rus_ich [418]

Answer:

The correct answer is letter "C": realistic.

Explanation:

American psychologist John L. Holland (1919-2008) proposed a theory summarizing people's personalities in six (6) types: <em>Realistic, Investigative, Artistic, Social, Enterprising, </em>and <em>Conventional</em>. Realistic individuals tend to be shy, genuine, persistent, stable, confirming, and practical. They usually work as mechanics, drill press operators, assembly-line workers or farmers.

Thus, <em>in Holland's Typology of Personalities Monica would be considered as realistic.</em>

7 0
3 years ago
Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishi
skad [1K]

Answer:

a. The cost of inventorying a single item is $1.00 per item.

b. The cost of inventorying a single item is $0.86 per item.

c. The cost of inventorying a single item is $0.95 per item.

d. The cost of inventorying a single item is $1.08 per item.

e. You should assign two workers per computer in order to minimize the cost of inventory per single item.

Explanation:

Note: This question is not complete. A complete question is therefore provided before answering the question as follows:

Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 125 items per hour. Two workers sharing a computer can together inventory 175 items per hour. Three workers sharing a computer can together inventory 185 items per hour. And four or more workers sharing a computer can together inventory fewer than 185 items per hour. Computers cost $100 each and you must pay each worker $25 per hour.

a. If you assign one worker per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

b. If you assign two workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

c. If you assign three workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item

d. If you assign four workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item.

e. How many workers per computer should you assign if you wish to minimize the cost of inventory per single item? _____ worker(s) per computer

The explanation to the answer is now provided as follows:

Note: See the attached excel file for all the calculations.

a. If you assign one worker per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

The cost of inventorying a single item is <u>$1.00 per item.</u>

b. If you assign two workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

The cost of inventorying a single item is <u>$0.86 per item.</u>

c. If you assign three workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item

The cost of inventorying a single item is <u>$0.95 per item.</u>

d. If you assign four workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item.

The cost of inventorying a single item is <u>$1.08 per item.</u>

e. How many workers per computer should you assign if you wish to minimize the cost of inventory per single item? _____ worker(s) per computer

To minimize the cost of inventory per single item, you should assign the number of workers at a point where the cost inventorying a single item is the lowest.

From from parts a to d above, the <u>lowest cost of $0.86 per item </u>of inventorying a single item is obtained in part b when you assign two workers per computer.

Therefore, you should assign two workers per computer in order to minimize the cost of inventory per single item.

Download xlsx
6 0
3 years ago
Amy's Drive-Thru, a fast food facility near a college campus, offers healthy, sustainably grown vegetarian and vegan fast-food a
Tems11 [23]

Answer: Focused differentiation strategy

Explanation: In focused differentiation strategy the focus of the entity providing the service is to make their product suitable and as per the expectations of the target market , which is very narrow in size and the requirements of the customers are very unique in such kind of target markets.

In the given case, as we know that vegetarian food is not very popular among the college students, since the preference towards health is usually seen in the age group of 25 to 35 working individuals.

Thus, the customer base of amy is very narrow.

Hence, we can conclude that Amy's is using focused differentiation strategy

7 0
3 years ago
Snyder, Inc. manufactures three types of golf balls; the Worm-burner, the Escalator, and the Slice. Over the past year, variable
jolli1 [7]

Answer:

D

Explanation:

Sales mix is a ratio of products sold. In this case, sales by golf ball type as a percentage of total sales is the sales mix as it shows the ratio of product sold.

7 0
3 years ago
Read 2 more answers
Bought goods<br> for<br> cash $100<br> to double<br> entry system.
aalyn [17]
Purchases account is going to increase on the credit side and the cash account is going to decrease ( to be written on the credit side).
3 0
3 years ago
Other questions:
  • A new labor-saving technology will likely result in..... Group of answer choices Lower wage share of output and lower Gini coeff
    10·1 answer
  • a form of bank service which automatically takes money out of a checking account at the point of sale is called a? A) debut card
    5·1 answer
  • . At the beginning of 2009, a government had a total debt of $540 billion dollars. It ended 2009 with a $6 billion dollar budget
    13·2 answers
  • What does it mean to say​ that, at an exchange rate of 1 USD​ = 40 ​INR, the U.S. dollar is undervalued and the Indian rupee is
    11·1 answer
  • When only certain EOC team members or organizations are activated to monitor a credible threat, which Activation Level has been
    5·1 answer
  • A test was administered to a group of students the morning after homecoming. Several of the students appeared tired and some wer
    12·1 answer
  • The calculation of the payback period for an investment when net cash flow is even (equal) is:
    5·1 answer
  • Man this Girl __________
    11·1 answer
  • Wayne Company's beginning and ending inventories for the month of June were as follows:
    15·1 answer
  • B2B marketing requires a special, unique set?​
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!