As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far:ItemSelling PriceVariable Cost% of Revenue$1.00$1.75$1.50$0.70$0.90$0.30Soft Drink26Wine24Coffee31Candy$1.00$0.3019Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $280.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be$280.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $80.00 for each booth per night, is also a fixed cost.a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $(round your response to two decimal places).%3Db) Based on the given information, the per night break-even point in servings for wine =servings (round your response to one decimal place).

\Given below is the information of the question: SOFT DRINK WINE COFFEE CANDY Selling price…

As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Selling Price Variable Cost % of Revenue Soft Drink $1,00 $0.70 $0.90 $0.30 $0.30 26 Wine $1.75 $1.50 $1.00 24 Coffee Candy 31 19 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $280.00 (5 booths $280.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $80.00 for each booth per night, is also a fixed cost. h 2 people each). Even if nothing is sold, your labor cost will be a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $ (round your response to two decimal places). b) Based on the given information, the per night break-even point in servings for wine = servings (round your response to one decimal place).

As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Selling Price Variable Cost % of Revenue Soft Drink $1,00 $0.70 $0.90 $0.30 $0.30 26 Wine $1.75 $1.50 $1.00 24 Coffee Candy 31 19 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $280.00 (5 booths $280.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $80.00 for each booth per night, is also a fixed cost. h 2 people each). Even if nothing is sold, your labor cost will be a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $ (round your response to two decimal places). b) Based on the given information, the per night break-even point in servings for wine = servings (round your response to one decimal place).

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 6R

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As manager of the St. Cloud Theatre Company,you have decided that concession sales will support themselves.The following table provides the information you have been ableto put together thus far:ITEM SELLING PRICE VARIABLE COST % OF REVENUESoft drink $1.00 $.65 25Wine 1.75 .95 25Coffee 1.00 .30 30Candy 1.00 .30 20Last year’s manager, Jim Freeland, has advised you to be sureto add 10% of variable cost as a waste allowance for all categories.You estimate labor cost to be $250.00 (5 booths with 2 peopleeach). Even if nothing is sold, your labor cost will be $250.00, soyou decide to consider this a fixed cost. Booth rental, which is acontractual cost at $50.00 for each booth per night, is also a fixedcost.a) What is the break-even volume per evening performance?b) How much wine would you expect to sell each evening at thebreak-even point?
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