(Answered) Problem - sams sushi serves only a fixed-price lunch the

Accounting

Problem - Sam's Sushi serves only a fixed-price lunch. The price of $10 and the variable cost of $4 per meal remain constant regardless of volume. Sam can increase lunch volume by opening and staffing additional check-out lanes. Sam has three choices.

Monthly Volume Range Total

(Number of Meals) Fixed Costs

1 Lane 0 - 5,000 $33,000

2 Lanes 5,001 - 8,000 39,000

3 Lanes 8,001 - 10,000 52,500

Required -

A. Calculate the break-even point(s)

B. If Sam can sell all the meals he can serve, should he operate at one,two, or three lanes? Support your answer.

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