Bretsky’s Steakhouse recently opened in Houston, TX. To keep things simple, the restaurant currently only offers a basic hamburger plate. The selling price is $18.00, with an 18% variable cost ratio. Fixed costs related to lunch service total $4,000 per week. Final unit numbers MUST be rounded to the next whole number A. Bretsky’s faces a 20% tax rate. The owner expects the lunch service to generate a net income of $7,000 per week. How many hamburger plates must be sold to achieve the weekly goal? 

Answer: ________________________________ 

B. Bretsky’s decides to offer a grilled chicken sandwich and a pulled pork sandwich in addition to the regular hamburger plate. The new chicken sandwich will sell for $20, and the pulled pork sandwich will sell for $22 – they have variable cost ratios of 20% and 22%, respectively. Total fixed costs are unaffected (i.e., total fixed costs remain $4,000). Management expects to sell three hamburger plates for every two chicken sandwiches and one pulled pork sandwich. How many of each must be sold to break even?

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