Question: 4 . Precious Bar is a small town tavern that sells only bottled beer. The average price of a bottle of beer is $ 4

4. Precious Bar is a small town tavern that sells only bottled beer. The average price of a bottle of beer is $4.00 and the average cost of a bottle of beer is $1.50. Precious bar is open at night. One bartender and 2-3 servers work each night. The fixed costs (salaries, rent, tax and utilities etc.) total $250,000 per year.
a) Precious wants to know how many bottles of beer his bar must sell during the year to start making a profit? (1 marks)
b) What is the revenue at the break-even quantity found in part A.?(1 mark)
c)Precious want to make $100,000 a year as an annual profit. How many bottles of beer should his bar need to sell to make a $100,000 profit? (2 marks)

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