Question

Wimpee's Hamburger Stand sells the Super Tuesday Burger for $3.00. The variable cost per hamburger is $1.75; total fixed cost per month is $25,000.

Required

a. How many hamburgers must Wimpee's sell per month to break even?
b. How many hamburgers must Wimpee's sell per month to make $6,000 in operating income?
c. Prepare a CVP graph for Wimpee's.
d. Assuming that the most hamburgers Wimpee's has ever sold in a month is 21,000, how likely is Wimpee's to achieve a target operating income of $6,000? What actions could Wimpee's manager take to increase the chances of reaching that target operating income?



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  • CreatedFebruary 21, 2014
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