HOMEWORK #4 BREAK EVEN ANALYSIS PROBLEM NEW ENGLAND SEAFOOD RESTAURANT HAS FIXED
ID: 418069 • Letter: H
Question
HOMEWORK #4
BREAK EVEN ANALYSIS PROBLEM
NEW ENGLAND SEAFOOD RESTAURANT HAS FIXED COSTS OF? _______
FIXED COSTS ARE:
RENT $25,000
INSURANCE 5,000
UTILITIES 10,000
COMMUNICATION 5,000
DEPRECIATION 10,000
TAXES 5,000
CORE LABOR 15,000
REPAIRS AND MAINTENANCE 5,000
COST OF FOOD 12,000
COST OF WINE 4,000
LINEN EXPENSE 2,000
SALES PRICE IS DETERMINED BY WHAT THE RESTAURANT WANTS TO MARK UP THE BASIC COST OF PREPARING THE ITEM.
50% OF ALL SALES PER MONTH ARE CHAR GRILLED PORTERHOUSE STEAKS THAT SELL FOR $20.00 A LA CARTE. THE STEAKS HAVE A COST OF $10.OO EACH. WHAT IS THE FOOD COST % FOR MARK UP? 10.00 DIVIDED BY .50= $20.00
25% OF ALL SALES ARE WHOLE BAKED LOBSTER THAT SELL FOR $32.00 PER A LA CARTE THAT HAVE A COST OF $16.00. 50% MARK UP AS WELL.
25% OF ALL SALES ARE STEAMED ALASKAN CRAB LEGS THAT ARE SOLD FOR $38.00 PER ORDER THAT COST $18.00. DIVIDED BY .48= 38.00
ALL STEAKS ARE SOLD WITH A JUMBO BAKED POTATO WITH ALL CONDIMENTS FOR $2.00 ADDITIONAL THAT HAS A FOOD COST OF $1.00
ALL LOBSTER AND CRAB ORDERS HAVE RICE PILAF WITH SAUTED WILD MUSHROOMS AT $3.00 PER ORDER THAT HAVE A FOOD COST OF $1.00
ALL COME WITH A GLASS OF WINE SOLD FOR $3.00 PER GLASS THAT HAS A COST OF 1.00.
HOW MANY ORDERS OF LOBSTER HAVE TO BE SOLD___________________?
HOW MANY ORDERS OF STEAK_____________________________________?
HOW MANY ORDERS OF CRAB LEGS____________________________________________?
HOW MANY BAKED POTATOES_____________________________________
HOW MANY ORDERS OF RICE PILAF____________________________________?
HOW MANY GLASSES OF WINE__________________________?
Explanation / Answer
Total fixed cost: $ 98000
We get the weighted share of profit:
So
Fixed cost RENT 25000 INSURANCE 5000 UTILITIES 10000 COMMUNICATION 5000 DEPRECIATION 10000 TAXES 5000 Labor 15000 REPAIRS 5,000 COST-food 12000 COST-Wine 4,000 LINEN 2,000 98000Related Questions
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