Question: Chipotle Multi-product Breakeven Analysis A Chipotle store is considering doing a local ad mailing that will cost $500. They predict the campaign will cause burrito

Chipotle Multi-product Breakeven Analysis

A Chipotle store is considering doing a local ad mailing that will cost $500. They predict the campaign will cause burrito sales to increase by 5% and taco sales by 2% in the next month.

Using the below monthly sales data, show how much will the local Chipotle make or lose on the $500 ad campaign. Show me mathematically how you got to your answer. (4 points)

Chipotle Monthly Sales

Product

Monthly Servings Sold

Avg. Price per Serving

Avg. Cost per Serving

Burrito

1200

$10.00

$3.50

Tacos

1000

$9.00

$4.00

Bowl

950

$8.50

$3.00

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