Reference no: EM132236189

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 30,000 drinks will be served. The selling price for each unit will average $1.50?; the cost is $1.25. 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 $5.00. The third major category is desserts and? wine, of which you also expect to sell 12,000 ?units, but with an average price of $2.50 per unit sold and a cost of $0.75 per unit. The final category is lunches and inexpensive? sandwiches, which you expect to total 22,500 units at an average price of $6.25 with a food cost of $3.75. Your fixed cost? (i.e., rent,? utilities, and so? on) is $1,600 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 your response to one decimal? place).