Determine the break-even point, Operation Management

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Question:

Le Bistro makes more than one product and would like to know its break-even point (price). Monthly fixed cost is estimated at $3,500 and management has gathered the following data:

183_Determine the break-even point.png

a) Determine the break-even point (price). Comment on the results

b) Assuming the company is open 6 days per week during 52 week, what would be the daily sales to achieve break-even?

c) Determine the number of sandwiches that need to be sold daily to achieve break-even

d) The Manager of the company wants an increase of $2,000 in his salary which is a fixed cost. What would be the new break-even point?


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