Question

ICE-3 (Work as a group of 3-4. Submit to Canvas by 02/17/2020, 11:59 PM) Income statement -La Brasserie restaurant $2,098,400 1.246,500 851,900 • Average dinner sale price - $40 • Average lunch sale price - $20 • Assume that the variable cost of preparing and serving dinner is also twice that of a lunch • The restaurant serves twice as many lunches as dinners • Assume - restaurant open for 305 days Revenues Cost of sales, all variable Gross profit Operating expenses Variable Fixed Administrative expenses, all fixed Net income 222,380 170,940 451,500 7,080 1. Compute the daily break-even volume in lunches and dinners for the restaurant Shortcut formulas: Break-even fixed expenses volume in units unit contribution margin - Break-even volume in sales fixed expenses contribution margin ISE 3004

Answer 1

lunch: dinnee 2:1 & 40 40 Revenue - $2,098, 400 lunch - $2,098,400X40 - $ 1,049,200 Dinnee - $1,049, 200 Variable expensel Cost of salle - operatoria - $1,246,500, $ 222,380 $1,468,860 734,44 0 forlun - $ 1,468,880 2 del Dinnee- & 734,440, No. of units sold lunch- & 1049,200 a 52,460 20 variable cost toe lunch $734,440 521460 = $14 per unit Dinnee - $6,049,200 40 & 26,280. 734,440 2 $28 pee unit. 26,230 Variable on loi Pinnee

Contribution per unde lunch = $20-$14 = $6 Dinner - d40- & 28 = $12 Totae fered cost ? - $140,940 + $ 451,500 $622,440 * Break Even Volume in units luncher – $622,440. = 103,740 unit. Dinner - $622,440 - 51,870 unfts $ 12 * Bueak Even volume en sale lunch – 103,740 × 20 = $2,074,800 Dinnee - 51,870 x 40 & $2,074,800