Wimpees Hamburger Stand sells the Super Tuesday Burger for $4.00. The variable cost per hamburger is $2.25;
Question:
Wimpee’s Hamburger Stand sells the Super Tuesday Burger for $4.00. The variable cost per hamburger is $2.25; total fixed cost per month is $38,500.
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 $10,500 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 24,000, how likely is Wimpee’s to achieve a target operating income of $10,500? What actions could Wimpee’s manager take to increase the chances of reaching that target operating income?
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a 400225x38500 0 175x 38500 x 22000 hamburgers b 400225x38500 105...View the full answer
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