Question: 6. This question is worth 2 points. Each answer is worth . 5 point. Maple Catering sells single catering packages with a selling price of

6. This question is worth 2 points. Each answer
6. This question is worth 2 points. Each answer is worth . 5 point. Maple Catering sells single catering packages with a selling price of $75 and variable costs per this package is $30. The company's monthly fixed expenses are $22,500. 1) What is the company's monthly break-even point in single catering packages? (in other words, how many packages the company needs to sell to breakeven?) 2) What is the company's monthly break-even point in dollars? = (selling price-variable cost per unit)/Selling price =$75 per unit $30 per unit) /$75 per unit =$45 per unit /$75 per unit= 0.6 Therefore = Fixed expenises/contribution margin ratio =$22,500/60%=$37,500 3) How many catering packages will Maple Catering need to sell in order to reach a target profit of $45,000 ? 4) What dollar sales will Maple Catering need in order to reach a target profit of $45,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!