Reference no: EM131751017

As a prospective owner of a club known as the Red? Rose, you are interested in determining the volume of sales dollars necessary for the coming year to reach the? break-even point. You have decided to break down the sales for the club into four? categories, the first category being beer. Your estimate of the beer sales is that 32,000 drinks will be served. The selling price for each unit will average $1.50?; the cost is $0.75. The second major category is? meals, which you expect to be 10,000 units with an average price of $10.00 and a cost of $5.50. The third major category is desserts and? wine, of which you also expect to sell 8,000 ?units, but with an average price of $2.25 per unit sold and a cost of $1.25 per unit. The final category is lunches and inexpensive? sandwiches, which you expect to total 22,500 units at an average price of $6.00 with a food cost of $3.25. Your fixed cost? (i.e., rent,? utilities, and so? on) is $2,000 per month plus $2,400 per month for entertainment. What is the monthy break even point in dollars.