These question analyses the performance of Brasserie Balzac’s latest year of operations (Year Y). Please use Brasserie Balzac’s income statement (contribution margin format), as well as the additional information provided to solve the questions.

Brasserie Balzac, Income Statement in $ - Contribution margin layout
Sales revenue ($) Variable cost of sales Variable operating expenses Total variable costs	Year Y in %
	1'560'000 624'000 78'000 702'000 100.0% 40.0% 5.0% 45.0%
Contribution margin	858'000 55.0%
Fixed costs: Salaries Marketing Rent Maintenance Other expenses Total fixed costs	600'000 24'000 100'000 28'000 52'000 804'000
Total costs	1'506'000
Operating profit	54'000 3.5%

Total Covers Sold	13'000
Cover Price	$ 120
Average cost per cover	$ 48

Please calculate the contribution per cover, operating leverage, breakeven point in units, breakeven point in $, margin of safety in units, and margin of safety in $.

Please note that 1 unit = 1 cover.

---What is the contribution per cover?

---What is the breakeven point in $?

---What is the operating leverage?

1. ---What is the breakeven point in units (covers)?

1. 
   

Answer rating: 100% (QA)

Solution To calculate the contribution per cover we need to divide the contribution margin by the to... View the full answer