Question: TWO ANSWERS ARE MENTIONED FOR THE QUESTION BELOW. EXPLAIN WHICH OF THE ANSWERS BELOW S THE RIGHT ONE AND WHY? PLEASE STATE THE REASON. Q:
TWO ANSWERS ARE MENTIONED FOR THE QUESTION BELOW. EXPLAIN WHICH OF THE ANSWERS BELOW S THE RIGHT ONE AND WHY? PLEASE STATE THE REASON.
Q: You opened a restaurant two months ago and observed the following demand in terms of the number of meals served and total cost for the two months of operation.
| Month | Number of meals served | Total Cost (TL) (fixed + variable) |
| 1 | 2,000 | 30,000 |
| 2 | 3,000 | 35,000 |
The average revenue per customer for both months is 10 TL. Assuming that the fixed and unit variable costs are the same for both months, calculate the break-even quantity for your restaurant.
Ans A:
2,000V+F=30,000
3,000V+F=35,000
V=5, F=20,000
BEQ=20,000/(10-5)=4,000
Ans B:
| Month | No. of meals served | Total cost (f+v) |
| 1 | 2000 | 30000 |
| 2 | 3000 | 35000 |
| 5000 | 65000 |
Revenue = 10 TL per meal
Fixed cost = varoable cost
Total cost = Total sales = Break-even Point
Marginal cost ,
sales - variable cost = fixed cost (Profit / Loss)
sales = Profit/Loss
10 TL = profit
sales volume = 5000 10 TL = 50000 TL
Variable cost = Fixed cost = 50 % on sales
= 50000 ( 50/100 ) = 25000
Contribution = 50000-25000 TL
= 25000 TL
P/V ratio = (C/S) 100 = (25000/50000) 100
= 50 %
Break-even sales = Fixed cost / p/v ratio = variable cost = fixed cost
= 25000/ 50% = (25000/50) 100 =50000 TL
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