Georges Grill analyzes profitability of three operating units: restaurant, bar, and billiards room. Revenues, variable...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Georges Grill analyzes profitability of three operating units: restaurant, bar, and billiards room. Revenues, variable costs, and attributable fixed costs (which can be avoided if the unit is eliminated) for each unit are as follows:
Restaurant
Bar
Billiards Room
Revenue
$320,000
$150,000
$40,000
Variable costs
120,000
35,000
10,000
Attributable fixed costs
80,000
25,000
15,000
Required George, the owner, is considering converting the billiards area into an expanded bar area. Ignoring remodeling costs, by how much will the bar segment margin have to increase for the income at Georges Grill to be at least as high as it is now? Think about other considerations that George will want to consider before making the decision to eliminate the billiards unit to expand the bar area.
The bars segment margin would have to increase by at least $__________
I NEED A DOLLAR AMOUNT NOT A PERCENTAGE. I can not figure out what the dollar amount is.
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!
