How many hot chocolates does need to sell

Assignment Help Operation Management

Reference no: EM131891618

Question: Tasty Ice Cream is a year-round take-out ice cream restaurant that is considering offering an additional product, hot chocolate. Considering the additional machine it would need plus cups and ingredients, it estimates fixed costs to be $201 per year and the variable cost to be $0.24. If it charges $1.09 for each hot chocolate, how many hot chocolates does it need to sell in order to break even?

Reference no: EM131891618

Questions Cloud

Air lines must liquidate some equipment : Allen Air Lines must liquidate some equipment that is being replaced. What is the equipment's after-tax net salvage value?

Discuss about a plan for a realistic market launch : Your task for the Final Project will be to plan a realistic market launch (from introduction through stabilization of operations).

The financial staff of cairn communications : The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service:

What is bond yield to maturity : What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 24 years? What if it matures in 6 years?

How many hot chocolates does need to sell : Tasty Ice Cream is a year-round take-out ice cream restaurant that is considering offering an additional product, hot chocolate.

Write an article on future technology trends : Write an article summary in memo format to Sandra Ellington that addresses two articles on future technology trends.

Perform the administrative functions related to business : Mark Pari is a self-employed electrician who exclusively uses a room in his home to perform the administrative functions related to his business.

Project has initial cost-project payback period : A project has initial cost of $52,000, expected net cash inflows of $11,000 per year for 8 years and cost of capital of 11%. What is project's payback period.

Require initial investment in equipment : Fairfax Pizza is evaluating a project that would require an initial investment in equipment of 400,000 dollars and that is expected to last for 8 years.

User Account

All Pages