As manager of the St. Cloud Theatre Company, you have decided that concession sales willsupport themselves. The following table provides the information you have been able to put together thus far: Last year’s manager, Jim Freeland, 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 $50.00 for each booth per night, is also a fixed cost. 1. a) What is the break-even volume per evening performance? 2. b) How much wine would you expect to sell each evening at the break-even point?
5- As manager of the St. Cloud Theatre Company, you have decided that concession sales willsupport themselves.
The following table provides the information you have been able to put together thus far:
Last year’s manager, Jim Freeland, 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 $50.00 for each booth per night, is also a fixed cost.
1. a) What is the break-even volume per evening performance?
2. b) How much wine would you expect to sell each evening at the break-even point?
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