Break-Even Analysis There are several formulas that will be helpful for this assignment: • Break-Even Units = Fixed Costs / (Price - Unit Variable Cost) • Break-Even Price = Variable Cost + (Fixed Costs / Projected Units) • Break-Even Revenues = Break-Even Units x Price • Target Profit Break-Even Units = (Fixed Costs + Target Profit) / (Price – Unit Variable Cost) Note that you can't sell a fraction of a unit (e.g., a half a cup of coffee). So, if you enter a number of units with a decimal, the computer will round it to a whole number. QUESTION 3 Of course, most businesses would like tơ do more than break even. They would like to make a profit instead, Calculate the target profit breakeven if the owner would like to units make $1,600 of profit each week, given that fixed costs are $13,000 and the price and cost of a cup of coffee are $2.90 and $0.60, respectively.0 In the early weeks of the cafe's existence, the owner expected to lose money but didn't want lose more than $2,700 each week. What quantity of cups would need to be sold units for that level of a loss? If the value you compute is not a whole number, round up to the nearest whole number. 0
Break-Even Analysis There are several formulas that will be helpful for this assignment: • Break-Even Units = Fixed Costs / (Price - Unit Variable Cost) • Break-Even Price = Variable Cost + (Fixed Costs / Projected Units) • Break-Even Revenues = Break-Even Units x Price • Target Profit Break-Even Units = (Fixed Costs + Target Profit) / (Price – Unit Variable Cost) Note that you can't sell a fraction of a unit (e.g., a half a cup of coffee). So, if you enter a number of units with a decimal, the computer will round it to a whole number. QUESTION 3 Of course, most businesses would like tơ do more than break even. They would like to make a profit instead, Calculate the target profit breakeven if the owner would like to units make $1,600 of profit each week, given that fixed costs are $13,000 and the price and cost of a cup of coffee are $2.90 and $0.60, respectively.0 In the early weeks of the cafe's existence, the owner expected to lose money but didn't want lose more than $2,700 each week. What quantity of cups would need to be sold units for that level of a loss? If the value you compute is not a whole number, round up to the nearest whole number. 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 3- Biz Cafe
![**Break-Even Analysis**
Several formulas will be helpful for this assignment:
- **Break-Even Units** = Fixed Costs / (Price – Unit Variable Cost)
- **Break-Even Price** = Variable Cost + (Fixed Costs / Projected Units)
- **Break-Even Revenues** = Break-Even Units × Price
- **Target Profit Break-Even Units** = (Fixed Costs + Target Profit) / (Price – Unit Variable Cost)
Note: You can’t sell a fraction of a unit (e.g., half a cup of coffee). If you enter a number of units with a decimal, the computer will round it to a whole number.
---
**QUESTION 3**
Of course, most businesses would like to do more than break even. They would like to make a profit instead. Calculate the target profit breakeven if the owner would like to make $1,600 of profit each week, given that fixed costs are $13,000 and the price and cost of a cup of coffee are $2.90 and $0.60, respectively. [ _____ ] units
In the early weeks of the café’s existence, the owner expected to lose money but didn’t want to lose more than $2,700 each week. What quantity of cups would need to be sold for that level of a loss? If the value you compute is not a whole number, round up to the nearest whole number. [ _____ ] units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7878796-4071-4397-9fae-1cbeb3b69837%2F57f46d05-16c2-4ea4-a510-f4b9a8c69202%2Ffblbnepw_processed.png&w=3840&q=75)
Transcribed Image Text:**Break-Even Analysis**
Several formulas will be helpful for this assignment:
- **Break-Even Units** = Fixed Costs / (Price – Unit Variable Cost)
- **Break-Even Price** = Variable Cost + (Fixed Costs / Projected Units)
- **Break-Even Revenues** = Break-Even Units × Price
- **Target Profit Break-Even Units** = (Fixed Costs + Target Profit) / (Price – Unit Variable Cost)
Note: You can’t sell a fraction of a unit (e.g., half a cup of coffee). If you enter a number of units with a decimal, the computer will round it to a whole number.
---
**QUESTION 3**
Of course, most businesses would like to do more than break even. They would like to make a profit instead. Calculate the target profit breakeven if the owner would like to make $1,600 of profit each week, given that fixed costs are $13,000 and the price and cost of a cup of coffee are $2.90 and $0.60, respectively. [ _____ ] units
In the early weeks of the café’s existence, the owner expected to lose money but didn’t want to lose more than $2,700 each week. What quantity of cups would need to be sold for that level of a loss? If the value you compute is not a whole number, round up to the nearest whole number. [ _____ ] units
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