What is the break-even quantity of bagels

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Reference no: EM131563051

You are considering opening a bagel restaurant aimed primarily at the breakfast trade. You’ll sell bagels, coffee, and other items in relatively fixed proportions to one another. For each bagel sold, you expect the company to sell two cups of coffee and $2 of other items. You’ll earn $0.50 on each bagel, $0.50 on each cup of coffee, and $1.00 on the other items. Salaries, equipment, and rent cost about $100,000 per year. What is the break-even quantity of bagels?

Reference no: EM131563051

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