Reference no: EM132078219
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 36,000 drinks will be served. The selling price for each unit will average $2.00?; the cost is $0.75. The second major category is? meals, which you expect to be 10,000 units with an average price of $12.00 and a cost of $5.50. The third major category is desserts and? wine, of which you also expect to sell 10,000 units, but with an average price of $2.75per unit sold and a cost of $1.00 per unit. The final category is lunches and inexpensive? sandwiches, which you expect to total 20,000 units at an average price of $6.25 with a food cost of $3.25. Your fixed cost? (i.e., rent,? utilities, and so? on) is $2,000 per month plus $2,200 per month for entertainment.
a) For Red? Rose, the monthly? break-even point in dollars? = $____ per month (round your response to two decimal? places)
b) If Red Rose is open 30 days per? month, then the expected number of meals that need to be sold each day? = _____ meals per day
(round to nearest whole number)