Question

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�s 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).

Answer 1