Robert plans to open an upscale wine bar where every glass of wine is priced at $15. His rent in the Rainey Entertainment District is steep. He also pays to advertise on social media sites and to train staff about wine. As a result of these and other factors, the wine bar’s fixed monthly cost is $50,000. Most of the variable costs are a function of wholesale wine prices and storage expenses, producing a unit margin of $10. If increased competition forces Robert to cut prices by $2.50 per glass of wine, what would be his monthly breakeven volume? 

Group of answer choices 

• 5,000
• 6,667 
• 10,000 
• 4,000

Answer rating: 100% (QA)

Fixed Cost Selling Price Margin per unit 10 Variable cost 5 Break eve... View the full answer