Question: Use the information on fixed costs calculated above in conjunction with the other information in the table to calculate a breakeven point quantity for each

  1. Use the information on fixed costs calculated above in conjunction with the other information in the table to calculate a breakeven point quantity for each item listed. In other words, how many of each item must be sold to cover the portion of fixed costs allocated to it? This may require you to review the model we covered in the video and the chapter. Please place your answers in the relevant cells of column G on the Manual sheet.
  2. Now that we have the breakeven quantity, use the selling price to show the dollar value of sales that is necessary to break even for each item. That is, how much revenue do we need to generate from each of the items listed in order to break even? Please place your answers in the relevant cells of column H on the Manual sheet.
  3. Calculate the total amount of revenue that the stadium must generate in order to break even on a per-game basis (sum the individual revenues, using the SUM function in Excel). Please place your answer in cell H12 on the Manual sheet.  Use the information on fixed costs calculated above in conjunction withthe other information in the table to calculate a breakeven point quantity

Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? B4 fx ITEM B D E F F G H 1 K K $ 20,000.00 Profit Target 1 2 3 ITEM Selling Price Variable Cost Percent of Revenue FC BEP SBEP 4 5 Hot Dog $3.00 $1.25 13% $4.25 $2.25 8% 6 7 $4.75 $3.50 9% Hamburger French Fries Pizza Nachos 8 $6.00 $3.50 6% 9 $4.50 $3.00 16% 10 Pretzel $3.50 $2.00 14% 11 Soda/Water $4.00 $0.75 34% 12 Total Manual Calculation 1). $ 1,103,331.00 Total Fixed Cost 2). $ $ 157,618.71 Per Game Fixed Cost

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!