These question analyses the performance of Brasserie Balzacs latest year of operations (Year Y). Please use Brasserie
Question:
These question analyses the performance of Brasserie Balzac’s latest year of operations (Year Y). Please use Brasserie Balzac’s income statement (contribution margin format), as well as the additional information provided to solve the questions.
Brasserie Balzac, Income Statement in $ - Contribution margin layout | |
Sales revenue ($) | Year Y in % |
1'560'000 624'000 78'000 702'000 100.0% 40.0% 5.0% 45.0% | |
Contribution margin | 858'000 55.0% |
Fixed costs: Salaries Marketing | 600'000 24'000 100'000 28'000 52'000 804'000 |
Total costs | 1'506'000 |
Operating profit | 54'000 3.5% |
Total Covers Sold | 13'000 |
Cover Price | $ 120 |
Average cost per cover | $ 48 |
Please calculate the contribution per cover, operating leverage, breakeven point in units, breakeven point in $, margin of safety in units, and margin of safety in $.
Please note that 1 unit = 1 cover.
---What is the contribution per cover?
---What is the breakeven point in $?
---What is the operating leverage?
- ---What is the breakeven point in units (covers)?
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw