determine the revenue level at the cash flow breakeven point? 381 OUS Be subtracted in the CVP formula used to 10. If, o If by changing an operation's sales mix, the CMR decreases, how is the breakeven level of sales affected? Problems Problem 1 The Eastpointe Café's average lunch sells for $12, while its variable costs per lunch average $8.00. It plans to advertise a Monday lunch special for $11. The special would cost Eastpointe $7.75 meal (variable costs). An ad in the local paper to promote the special would cost Eastpointe $200. per Required: 1. What are the café's contribution margin (CM) and contribution margin ratio (CMR) to begin with? 2. What are the CM and CMR based strictly on the lunch special-related price and cost? * 3. How many Srinont lunch covers must be sold to cover the promotion of the luncheon special? Problem 2 The 100-room limited-service Pepper Inn has an ADR of $80 and variable costs per room sold of $15 ere is no other sales activity. Its monthly fixed costs total $100,000.
determine the revenue level at the cash flow breakeven point? 381 OUS Be subtracted in the CVP formula used to 10. If, o If by changing an operation's sales mix, the CMR decreases, how is the breakeven level of sales affected? Problems Problem 1 The Eastpointe Café's average lunch sells for $12, while its variable costs per lunch average $8.00. It plans to advertise a Monday lunch special for $11. The special would cost Eastpointe $7.75 meal (variable costs). An ad in the local paper to promote the special would cost Eastpointe $200. per Required: 1. What are the café's contribution margin (CM) and contribution margin ratio (CMR) to begin with? 2. What are the CM and CMR based strictly on the lunch special-related price and cost? * 3. How many Srinont lunch covers must be sold to cover the promotion of the luncheon special? Problem 2 The 100-room limited-service Pepper Inn has an ADR of $80 and variable costs per room sold of $15 ere is no other sales activity. Its monthly fixed costs total $100,000.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:determine the revenue level at the cash flow breakeven point?
381
OUS Be subtracted in the CVP formula used to
10. If,
o If by changing an operation's sales mix, the CMR decreases, how is the
breakeven level of sales affected?
Problems
Problem 1
The Eastpointe Café's average lunch sells for $12, while its variable costs per lunch average
$8.00. It plans to advertise a Monday lunch special for $11. The special would cost Eastpointe
$7.75 meal (variable costs). An ad in the local paper to promote the special would cost
Eastpointe $200.
per
Required:
1. What are the café's contribution margin (CM) and contribution margin ratio (CMR) to
begin with?
2. What are the CM and CMR based strictly on the lunch special-related price and cost?
* 3. How many
Srinont
lunch covers must be sold to cover the promotion of the luncheon special?
Problem 2
The 100-room limited-service Pepper Inn has an ADR of $80 and variable costs per room
sold of $15
ere is no other sales activity. Its monthly fixed costs total $100,000.
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