a.what is the break even volume in dollars for selling drinks at booth? b. how many of each item would you expect to sell at break even point?

as a manager of a drink booth, you estimate labor costs to be $300 (2 ppl, $150 per day). even if nothing is sold. another fixed cost is the rental of the booth for $200 a day.

items               price per unit        variable cost per unit        % of sales

soft drinks      1.00                       0.35                                      0.15

wine                 3.75                       1.76                                      0.30

coffee               1.75                      0.65                                      0.30

tea                   1.50                       0.58                                      0.10

water               1.00                      0.28                                       0.15

 

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