1. Wayne owns a shaved ice stand. He sells 700 shaved ice cups per month at $1.50...

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1. Wayne owns a shaved ice stand. He sells 700 shaved ice cups per month at $1.50 each, making the total revenue $1050. Each shaved ice costs Wayne $0.50 and he has fixed cost of $750, making his total cost $1100.Therefore, he realizes a loss of $50 a month. Help him determine what his break-even point is.

2. Based on the above Excel Problem; if the total capacity for this business is 725 will you stay in it? If you want to stay in it what price you need to obtain a break-even point of 725?


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Cornerstones of Cost Management

ISBN: 978-1285751788

3rd edition

Authors: Don R. Hansen, Maryanne M. Mowen

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