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What is the weekly breakeven point measured by burritos

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Reference no: EM132856934

Question - In 2004, Chipotle Mexican Grill opened its first restaurant on 1644 E. Evans in Seattle, location of former Dolly Madison ice cream. Chipotle sells one burrito for every three tacos. The average selling prices are $6.5 per burrito and $2 per taco. The contribution margin ratio is 40% on both burritos and tacos. The weekly average fixed cost per restaurant is $1,500.

Assuming all revenues and costs come from the sale of burritos and tacos and assuming a constant mix of products, what is the weekly breakeven point measured by burritos and tacos? Show the number of burritos and the number of tacos.

Reference no: EM132856934

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