restaurants has two primary offerings – standard and gluten-free bread. In topic 1, you were provided...

restaurants has two primary offerings – standard and gluten-free bread. In topic 1, you were provided with the following information about restaurant:

 540 units of standard bread per day

 130 units of gluten-free bread per day

 360 baking days per year

 the business incurs an additional $565,000 of costs per annum of which 15% is fixed. Use the information you calculated in topic 1, and the selling prices of $10.25 per unit for standard bread and $13.75 for gluten-free bread. Note, a weighted average contribution margin is required to complete this exercise.

a) Based on annual averages, calculate

a. Break-even point in units and dollars

b. Break-even point in units and dollars where a target profit of $485,000 is identified

c. Break-even point in units and dollars where the target profit used in b is after tax.

b) Write a paragraph communicating the findings to the owner.

Solutions

Expert Solution

ekkarill92 answered 11 months ago

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