BREAK EVEN ANALYSIS PROBLEM

NEW ENGLAND SEAFOOD RESTAURANT HAS FIXED COSTS OF? _______

FIXED COSTS ARE:

1. RENT $25,000
2. INSURANCE 5,000
3. UTILITIES 10,000
4. COMMUNICATION 5,000
5. DEPRECIATION 10,000
6. TAXES 5,000
7. CORE LABOR 15,000
8. REPAIRS AND MAINTENANCE 5,000
9. COST OF FOOD 12,000
10. COST OF WINE 4,000
11. LINEN EXPENSE 2,000

SALES PRICE IS DETERMINED BY WHAT THE RESTAURANT WANTS AS A PROFIT MARGIN OVER THE BASIC COST OF PREPARING THE ITEM.

50% OF ALL SALES PER MONTH ARE CHAR GRILLED PORTERHOUSE STEAKS THAT SELL FOR $20.00 A LA CARTE. THE STEAKS HAVE A COST OF $10.OO EACH. WHAT IS THE FOOD COST % FOR PROFIT MARGIN? 10.00 DIVIDED BY .50= $20.00

25% OF ALL SALES ARE WHOLE BAKED LOBSTER THAT SELL FOR $32.00 PER A LA CARTE THAT HAVE A COST OF $16.00. 50% PROFIT MARGIN AS WELL.

25% OF ALL SALES ARE STEAMED ALASKAN CRAB LEGS THAT ARE SOLD FOR $38.00 PER ORDER THAT COST $18.00. DIVIDED BY .48= 38.00

ALL STEAKS ARE SOLD WITH A JUMBO BAKED POTATO WITH ALL CONDIMENTS FOR $2.00 ADDITIONAL THAT HAS A FOOD COST OF $1.00

ALL LOBSTER AND CRAB ORDERS HAVE RICE PILAF WITH SAUTED WILD MUSHROOMS AT $3.00 PER ORDER THAT HAVE A FOOD COST OF $1.00

ALL COME WITH A GLASS OF WINE SOLD FOR $3.00 PER GLASS THAT HAS A COST OF 1.00.

1. HOW MANY ORDERS OF LOBSTER HAVE TO BE SOLD___________________
2. HOW MANY ORDERS OF STEAK_____________________________________
3. HOW MANY ORDERS OF CRAB LEGS____________________________________________
4. HOW MANY BAKED POTATOES_____________________________________
5. HOW MANY ORDERS OF RICE PILAF ____________________________________
6. HOW MANY GLASSES OF WINE__________________________