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: ItemSelling PriceVariable Cost% of RevenueSoft Drink$1.25$0.6526Wine$2.00$0.9024Coffee$1.50$0.4030Candy$1.20$0.2520 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$60.00for each booth per night, is also a fixed cost.a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company =$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 havebeen able to put together thus far:ItemSelling PriceVariable Cost% of RevenueSoft Drink$1.25$0.6526Wine$2.00$0.9024Coffee$1.50$0.4030Candy$1.20$0.2520Last 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 contractualcost 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).

When the Costs Incurred is recovered through the sales during the year. That point where all costs…

Answered: a) Based on the information available,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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).

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