Assume the following information, based on the example I gave in class last week. A couple...

 

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Assume the following information, based on the example I gave in class last week. A couple decides to host a concession at the 1996 Atlanta Olympic Games. The couple plans to sell shaved-ice cones. The couple has come to you and asked you to perform a break-even analysis for the proposed concession. The timeframe is June 1995 with the Olympics scheduled for July 1996. The couple has estimated the following costs: Concessions Permit: $12,500 Shaved-Ice Equipment: $12,995 Travel Costs to and from Atlanta: Liability Insurance Accommodations in Atlanta Business Set-Up Costs Interest on Credit Cards $ 2,400 $ 750 $ $ $ 1,560 Questions 3,900 695 HAPPY HAWAIIAN SHAVED IGE 1. Calculate break-even sales volume. "F The couple estimates that it can sell now cone for $5. Variable costs are estimated at $2.00 per cone (ice, flavoring, labor, utilities.) Once the Olympics are over, the couple estimates that it can sell the "used" equipment for $5,000 (effectively lowering its fixed costs by $5,000.) FESTIVALS SPECIAL EVENTS 510.352.6800 2. Graph your results. Be sure to label fixed costs, variable costs, total costs, total revenue, break-even volume, break-even sales revenue, both the X and the Y axes and the areas of profit and loss. Assume the following information, based on the example I gave in class last week. A couple decides to host a concession at the 1996 Atlanta Olympic Games. The couple plans to sell shaved-ice cones. The couple has come to you and asked you to perform a break-even analysis for the proposed concession. The timeframe is June 1995 with the Olympics scheduled for July 1996. The couple has estimated the following costs: Concessions Permit: $12,500 Shaved-Ice Equipment: $12,995 Travel Costs to and from Atlanta: Liability Insurance Accommodations in Atlanta Business Set-Up Costs Interest on Credit Cards $ 2,400 $ 750 $ $ $ 1,560 Questions 3,900 695 HAPPY HAWAIIAN SHAVED IGE 1. Calculate break-even sales volume. "F The couple estimates that it can sell now cone for $5. Variable costs are estimated at $2.00 per cone (ice, flavoring, labor, utilities.) Once the Olympics are over, the couple estimates that it can sell the "used" equipment for $5,000 (effectively lowering its fixed costs by $5,000.) FESTIVALS SPECIAL EVENTS 510.352.6800 2. Graph your results. Be sure to label fixed costs, variable costs, total costs, total revenue, break-even volume, break-even sales revenue, both the X and the Y axes and the areas of profit and loss.

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Step 12 To calculate the breakeven sales volume we need to determine the total fixed costs and total ... View the full answer