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
According to a summary of the payroll of Scotland Company, total salaries were $500,000. Assume that social security taxes are p
OleMash [197]

Answer:

The journal entry to record accrued salaries would include a credit to salaries payable of $364500.

Explanation:

Salaries payable = 500000 - (500000*6%) - (500000*1.5%) - 98000

                            = $364500

Therefore, The journal entry to record accrued salaries would include a credit to salaries payable of $364500.

5 0
3 years ago
Hobson Company bought the securities listed below during 2020. These securities were classified as trading securities. In its De
Wewaii [24]

Answer:

$50,800

Explanation:

Security     Cost       Fair value     Gain(loss)

X              371,000    343,500        -27,500  

Y              185,000     162,400        -22,600  

Z              <u>424,000</u>    <u>407,800</u>        <u>-16,200 </u>

Total        <u>980,000</u>    <u>913,700</u>         <u>-66,300</u>

Unrealized holding loss on Income statement ended June 30,2021 = $66,300 - $15,500 = $50,800

3 0
3 years ago
If the federal funds rate were above the level the Federal Reserve had targeted, the Fed could move the rate back towards its ta
Dmitriy789 [7]

Answer:

The correct answer is option b.

Explanation:

If the federal fund's rates were above the targeted rate, the Fed would need to move it towards the targeted rate. To move the interest rate towards the targeted rate, the government would need to increase the money supply. This can be done by buying bonds. When the Fed buys bonds they pay for it, this causes the money supply to increase. As the supply curve shifts to the right, the interest rate will fall down.

4 0
3 years ago
âas an individual consumes more of a given good or service, the marginal utility of that good to the consumer likely:
Ilya [14]
Answer:  " DECREASES" .___________________________________
4 0
3 years ago
Your unemployed friend Seymour sent you a test of his electronic cover letter. You see that he is struggling with the appropriat
Ugo [173]

tell him to put less information with more details.

Instead of putting large amounts of small information in a cover letter, he should be putting small amounts of information with smaller details, a cover letter is explaining you and your backround better to the employers to see if you're what they want, and to get to know your backround better. If Seymour puts his little important details of information he will have a better chance at impressing the employers.

4 0
3 years ago
Read 2 more answers
Other questions:
  • A good reason to open a checking account is that
    9·1 answer
  • Howard Industries is a computer manufacturer located in Laurel, MS. This company is interested in expanding internationally. Whi
    8·1 answer
  • The largest royalty for texas university endowment comes from which economic product?
    14·1 answer
  • Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 p
    14·1 answer
  • Valerie contracts with Esteban, who agrees to build a stone retaining wall and drain on her property. The wall and drain are nec
    7·1 answer
  • In the late nineteenth century, many businessmen argued that the United States should be prepared to compete with nations throug
    8·1 answer
  • A coalition is best defined as a group of two or more individuals who combine their resources to affect the decision outcome of
    14·1 answer
  • 1. Nunes, Orta and Paulo are partners providing engineering services. Relevant data regarding income-sharing relationships and c
    7·1 answer
  • The​ ________ is the optimum budget to managers that plan revenues and expenses at different sales volumes.
    12·1 answer
  • If the sales volumes in the east and west regions had been reversed, what would be the company’s overall break-even point in uni
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!