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Here is the data again in table format. Hopefully, this should help you

Item Selling Price/Unit Variable Cost/Unit Percent Revenue
Soft drink $1.50 $ .75 25%
Coffee 2.00 .50 25%
Hot dogs 2.00 .80 20%
Hamburgers 2.50 1.00 20%
Misc. snacks 1.00 .40 10%

(1) What is the break-even point in dollars for all food sales; (2) What is the realistic sales estimates (for instance, he wants to know how many dollars each attendee is spending on food at his projected break-even if attendance grows to 70,000); (3) what sales per attendee would be if attendance remained about 27,000; and (4) what his unit sales would be at break-even, that is, what are his sales of soft drinks, coffee, hot dogs, and hamburgers.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M992020

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