Your engineering friend has decided to quit his $150,000 a year job and has $500,000 in funds. He wants to explore opening a Taproom serving local micro-brews in a strip mall location and believes that the Taproom equipment could be resold for $70,000 if he abandons the venture.. The initial build-out of store is $70,000 of equipment only and the landlord will make all other improvements. The owner believes that the selling price per unit is $15 and the variable costs will average $5. If the annual fixed costs are $80,000, then how many beers are need to break-even for the Taproom and provide just the same wage assuming a 360 day year?

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Calculate the breakeven point Fixed cost per annum 80000 Sell... View the full answer