Tamati has been pleased with the success at Fush in recent years and is thinking about expanding to a 2nd location across the city. Fush 2 will have a slightly different approach while maintaining the current culture and mission of the organisation. Tamiti is tentatively planning for the following four categories of revenue: - Beer and Wine. He estimates that 15,000 drinks will be served, with a selling price of $9 and the cost to produce the drink is $7 - Fish Dinners/ The fish dinner will sell for $19.50, with a cost of $15. Selling 20,000 meals - Dessert. Will sell for $8 at a cost of $6.50. Selling 9,500 units - Lunch specials. Selling 10,000 in the next year. lunch prices will average $10 with a cost of $8. Expenses of Fush per month in rent and utilities is $5,300 and monthly labour costs estimated $7,600 monthly (fixed cost in this case). What is the breakeven point in dollar

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Tamati has been pleased with the success at Fush in recent years and is thinking about expanding to a 2nd location across the city. Fush 2 will have a slightly different approach while maintaining the current culture and mission of the organisation. Tamiti is tentatively planning for the following four categories of revenue:

- Beer and Wine. He estimates that 15,000 drinks will be served, with a selling price of $9 and the cost to produce the drink is $7

- Fish Dinners/ The fish dinner will sell for $19.50, with a cost of $15. Selling 20,000 meals

- Dessert. Will sell for $8 at a cost of $6.50. Selling 9,500 units

- Lunch specials. Selling 10,000 in the next year. lunch prices will average $10 with a cost of $8.

Expenses of Fush per month in rent and utilities is $5,300 and monthly labour costs estimated $7,600 monthly (fixed cost in this case).

What is the breakeven point in dollar

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Strategic business units
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education