Calculate your break-even point in monthly sales

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Reference no: EM13909994

1. Group your fixed and variable costs

2. Calculate your break-even point in monthly sales

3. Determine your monthly sales needed to have a contribution margin of $10,000

4. Determine your net income/profit when you have a contribution margin of $10,000

5. Determine your margin of safety based on your monthly sales over the break-even sales.

Your new food service operation has the following expenses:

Salary $ 3,000.00 per month

Utilities $ 375.00 per month

Contract Services $ 575.00 per month

Advertising $ 190.00 per month

Rent $1,000.00 per month

Insurance $ 100.00 per month

Accounting and Legal fees $ 175.00 per month

Permits and Licenses $ 75.00 per month

Operating Supplies 10% of monthly sales

Hourly Wages 30% of monthly sales

Food Cost 25% of monthly sales

Reference no: EM13909994

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