Reference no: EM132466633

Sam's Sushi serves only a fixed-price lunch. The price of $10 and the variable cost of $6 per meal remain constant regardless of volume. Sam can increase lunch volume by opening and staffing additional check¬out lanes. Sam has three choices, as follows.
                        Monthly Volume
                         Range                                                                                      Total
                    (Number of Meals)                                                                    Fixed Costs

1 Lane	0-5,000	$       23,000
2 Lanes	5,001-8,000	29,000
3 Lanes	8,001-10,000	36,600

Required:

Question a. Calculate the break-even point(s).

Question b-1 Calculate the profit (or loss) for each alternative, assuming Sam can sell all the meals he can serve.

Question b-

2 Should Sam operate at one, two, or three lanes?