Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. e. 9- the owner of a small restaurant that sells b

e. 9- The owner of a small restaurant that sells burgers pays each month $1,000...

60.1K

Verified Solution

Question

Accounting

image
e. 9- The owner of a small restaurant that sells burgers pays each month $1,000 in rent, $300 in utilities, $200 interest on his loan, and $500 on advertising on local buses. A burger sandwich is priced at $4.00. Unit variable costs for the burger sandwich is $2.00. a. Calculate unit margin and monthly fixed cost. b. How many sandwiches does the restaurant need to sell to break-even each month? C. Calculate Total Cost at Break even d. Calculate Total Revenue at Break even. How many sandwiches does the restaurant need to sell to earn $500 profit each month? f. Suppose restaurant sells 1200 burgers each month. Calculate profit. 8. Suppose restaurant sells 1200 burgers each month. Owner is thinking whether to advertise also in local TV to increase demand. Local TV ads costs $500 monthly. How many more burgers should restaurant sell in order to at least offset local TV advertising costs? h. Suppose restaurant sells 1200 burgers at $4 each. Owner is thinking whether to increase the price to $4.5. But he knows that the price increase will droby the demand to 1100 burgers. Should he increase the price or not

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. Please answer the following questions.     ?What is equipartition principle? Why is the latent heat of vaporization      for...

Physics
Q

On January 5, 2018, Parker Corporation received a charter granting the right to issue 6,000 shares...

Accounting
Q

Drag and drop the components of Mendel s experiments and laws of probability to match...

Biology
Q

F a 1 F c 3 F d 4 F 93 Four capacitors are connected...

Physics
Q

6 An obtuse angle has the point B x y on its terminal arm a...

Geometry
Q

In the triangle ABC side b 9 side c 7 and side a 6 what...

Geometry
Q

Krish is taking a penalty shot for his soccer team. He estimates that his chances...

Basic Math
Q

find the integral S 4 dx A in 1x 21 c in 1x 2 c...

Calculus
Q

The following financial information pertains to Smith Architects: Required: a. Calculate Smith Architects return on...

Accounting
Q

Cordova manufactures three types of stained glass windows, cleverty named Products A. B, and C....

Accounting
Q

Which one of the following is the most useful measure for evaluating a manager's performance...

Accounting
Q

\begin{tabular}{|l|r|r|r|} \hline & \multicolumn{2}{c|}{ For years ended December 31} \\ \cline { 2 - 4...

Accounting