a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $ (round your response to two decimal places).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
As manager of the St. Cloud Theatre​ Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus​ far:
                                                                                                                   
Item
Selling Price
Variable Cost
​% of Revenue
Soft Drink
$1.25
$0.65
26
Wine
$2.00
$0.90
24
Coffee
$1.50
$0.40
30
Candy
$1.20
$0.25
20
 
Last​ year's manager, Scott​ Ellis, has advised you to be sure to add​ 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be
$250.00
​(5 booths with 2 people​ each). Even if nothing is​ sold, your labor cost will be
$250.00​,
so you decide to consider this a fixed cost. Booth​ rental, which is a contractual cost at
$60.00
for each booth per​ night, is also a fixed cost.
​a) Based on the information​ available, the per night​ break-even point in dollars for the St. Cloud Theatre Company​ =
​$nothing
​(round your response to two decimal​ places).
As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have
been able to put together thus far:
Item
Selling Price
Variable Cost
% of Revenue
Soft Drink
$1.25
$0.65
26
Wine
$2.00
$0.90
24
Coffee
$1.50
$0.40
30
Candy
$1.20
$0.25
20
Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $250.00
(5 booths with 2 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual
cost at $60.00 for each booth per night,
also a fixed cost.
a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $ (round your response to two decimal places).
Transcribed Image Text:As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Selling Price Variable Cost % of Revenue Soft Drink $1.25 $0.65 26 Wine $2.00 $0.90 24 Coffee $1.50 $0.40 30 Candy $1.20 $0.25 20 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $250.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $60.00 for each booth per night, also a fixed cost. a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $ (round your response to two decimal places).
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 4 images

Blurred answer
Knowledge Booster
Divisional performance management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education