Transcribed Image Text
As manager of the Best Drinks Company in Hayward, you would liketo sell drinks at a booth during the major celebration in theHayward’s Central Park. The following table provides informationabout the drinks that you will be selling: You estimate labor costto be $600 (2 people, $300 dollars each per day at the booth). Evenif nothing is sold, your labor cost will be still $600, so youdecide to consider this a fixed cost. Booth rental, $400, is also afixed cost. Apply the total fixed cost for your break-evenanalysis, and do not annualize the fixed cost.ItemsPrice per unit, $Var. cost per unit, $% of SalesSoft drinks1.500.450.20wine5.292.760.15Coffee1.990.760.30Tea1.500.350.05Water1.000.290.30Questions What is the break-even volume (in dollars) for sellingdrinks at the booth? Show your calculations manually or use Excel.How much would you expect to sell at the break-even point? Presentand explain your calculations.