Assume the following existing information for Shaggy's Burgers: Revenue (selling price) per burger (unit) Variable costs...

 

Transcribed Image Text:

Assume the following existing information for Shaggy's Burgers: Revenue (selling price) per burger (unit) Variable costs per unit Burgers (units) sold per year Profit per year $12 $4 10,000 $30,000 Shaggy's is exploring the idea of implementing a new design layout which will increase the variable costs by 20% and fixed costs by 10% but will result in a sales increase of 2000 burgers to 12,000. 22. Based on the new design layout, at what selling price will Shaggy's break-even? (6 marks) Assume the following existing information for Shaggy's Burgers: Revenue (selling price) per burger (unit) Variable costs per unit Burgers (units) sold per year Profit per year $12 $4 10,000 $30,000 Shaggy's is exploring the idea of implementing a new design layout which will increase the variable costs by 20% and fixed costs by 10% but will result in a sales increase of 2000 burgers to 12,000. 22. Based on the new design layout, at what selling price will Shaggy's break-even? (6 marks)

Answer rating: 100% (QA)

To find the selling price at which Shaggys will break even with the new design layout we need to cal... View the full answer