macs pub

Project Description:

mac’s brew pub, located near state university, serves as a gathering place for the university’s more social scholars. mac sells draft beer and all brands of bottled beer at a contribution margin of $.60 a beer.

mac is considering also selling hamburgers during selected hours. his reasons are twofold. first, sandwiches would attract daytime customers. a hamburger and a beer are a quick lunch. second, he has to meet competition from other local bars, some of which provide more extensive menus.

mac analyzed the costs as follows:

per month

per hamburger

monthly fixed expenses

variable expenses

wages of part-time cook






meat @ $2.80 per pound (seven hamburgers per pound)














mac planned a selling price of $1.20 per hamburger to lure many customers. for all questions, assume a 30-day month.

1. what are the monthly and daily break-even points, in number of hamburgers?

2. what are the monthly and daily break-even points, in dollar sales?

3. at the end of 2 months, mac finds he has sold 3,600 hamburgers. what is the operating profit per month on hamburgers?

4. mac thinks that at least 60 extra beers are sold per day because he has these hamburgers available. this means that 60 extra people come to the bar or that 60 buy an extra beer because they are attracted by the hamburgers. how does this affect mac’s monthly operating income?

5. refer to requirement 3. how many extra beers would have to be sold per day so that the overall effects of the hamburger sales on monthly operating income would be zero?
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Price Type: Negotiable

Total Proposals: 6
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