Variable cost as waste allowance for all categories

Assignment Help Operation Management

Reference no: EM132079220

As manager of the St. Cloud Theatre? Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus? far:

Item Selling Price Variable Cost % of Revenue

Soft Drink $1.20 $0.60 26

Wine $1.80 $0.95 26

Coffee $1.00 $0.35 29

Candy $1.00 $0.35 19

Last year' manager, Jim Freeland, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $300.00 ( 5 booths with 3 people each). Even if nothing is sold, your labor cost will be $300.00, so you decide to consider this a fixed cost. Booth rental, which is contractual cost at $80.00 for each booth per night is also a fixed cost.

Based on the information? available, the per night? break-even point in dollars for the St. Cloud Theatre Company? = _______ (round your response to two decimal? places).

Based on the given? information, the per night? break-even point in servings for wine? = servings ?(round your response to one decimal? place).

Reference no: EM132079220

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