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 $1,00 $0.70 $0.90 $0.30 $0.30 26 Wine $1.75 $1.50 $1.00 24 Coffee Candy 31 19 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 $280.00 (5 booths $280.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $80.00 for each booth per night, is also a fixed cost. h 2 people each). Even if nothing is sold, your labor cost will be 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). b) Based on the given information, the per night break-even point in servings for wine = servings (round your response to one decimal place).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
$1.00
$1.75
$1.50
$0.70
$0.90
$0.30
Soft Drink
26
Wine
24
Coffee
31
Candy
$1.00
$0.30
19
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 $280.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be
$280.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $80.00 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 = $
(round your response to two decimal places).
%3D
b) Based on the given information, the per night break-even point in servings for wine =
servings (round your response to one decimal place).
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 $1.00 $1.75 $1.50 $0.70 $0.90 $0.30 Soft Drink 26 Wine 24 Coffee 31 Candy $1.00 $0.30 19 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 $280.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $280.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $80.00 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 = $ (round your response to two decimal places). %3D b) Based on the given information, the per night break-even point in servings for wine = servings (round your response to one decimal place).
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