Question: Q. the BEP = Total Fixed Costs / (Average Order Price - Variable Cost per Order). Using this formula, what is the breakeven point? In

Q. the BEP = Total Fixed Costs / (Average Order Price - Variable Cost per Order). Using this formula, what is the breakeven point? In other words, how many orders would need to be sold before the business starts making a profit given the current price and cost structure?Here's the information you need to do the bistro's BEP analysis:

Current Orders per Month - 750

Average Order Price - $11.00

Variable Cost per Order - $5.00

Rent per Month - $2,000.00

Utilities per Month - $400.00

Labor per Month - $3,000.00

Calculate the BEP using the numbers and formulas above. Hint: total fixed costs in this case are the sum of rent, utilities and labor.

Q. Give three recommendations for changes to the 4 P's.

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