Incremental breakeven analysis with complements

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Reference no: EM132025010

Incremental Breakeven Analysis with Complements (show all work)

Eric runs a Vietnamese pho restaurant. Each regular size of pho sells for $5.50. The variable cost per bowl is $1.80. He currently sells 150 bowls of pho per day.

For every 2 bowls of pho, an average of 0.5 glasses of coconut juice and 1.2 spring rolls are sold as well. The margins for each glass of coconut juice and each order of spring rolls are $0.80 and $1.05 respectively. Eric is thinking about cutting the price of a bowl of pho to $5 to increase sales.

What is the minimum number of additional bowls per day that he has to sell to make $100 in extra profits per day?

Reference no: EM132025010

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