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 Soft Drink Wine Coffoc Selling Price $1.00 $1.75 $1.50 Variable Cost $0.70 $1.00 SO 25 % of Revenue 24 25 20

Practical Management Science
6th Edition
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Chapter2: Introduction To Spreadsheet Modeling
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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
Soft Drink
Wine
Coffee
Candy
Selling Price
$1.00
$1.75
$1.50
$0.75
Variable Cost
$0.70
$1.00
$0.35
$0.35
% of Revenue
24
25
29
22
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 = $ (round your response to two decimal places).
b) Based on the given information, the per night break-even point in servings for w
servings (round your answer 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 Soft Drink Wine Coffee Candy Selling Price $1.00 $1.75 $1.50 $0.75 Variable Cost $0.70 $1.00 $0.35 $0.35 % of Revenue 24 25 29 22 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 = $ (round your response to two decimal places). b) Based on the given information, the per night break-even point in servings for w servings (round your answer to one decimal place). =
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