Answer:
break even point = 3,577 bundles which include:
- 10,731 beers
- 3,577 meals
- 3,577 desserts and wine
- 7,154 lunches and sandwiches
Explanation:
estimated beer sales 30,000
contribution margin per beer = $0.75
estimated meals sales 10,000
contribution margin per meal $5
estimated desserts and wine sales 10,000
contribution margin per dessert and wine $1.50
estimated lunches and sandwiches sales 20,000
contribution margin per lunch and sandwich sales $2
we can make 10,000 bundles consisting of:
3 beer sales = $2.25
1 meal sale = $5
1 dessert and wine sale = $1.50
2 lunches and sandwiches = $4
contribution margin per bundle = $12.75
total fixed costs = $3,800 x 12 months = $45,600
break even point (in bundles) = total fixed costs /contribution margin per bundle = $45,600 / $12.75 = 3,576.47 ≈ 3,577 bundles
