3 Given the following information calculate the number of me

3. Given the following information, calculate the number of meals a restaurant would have to sell to break even: (10%) Average meal price = $10.35 Meals sold- 8560 Food- $27653 Food labor = $183 86 Supplies- $3133 Management = $4855 Maintenance $2213 Bouns = $1650 Insurance $1904 | Waste management-$988 Utilities- $3159 Rent- $3960

Solution

Fixed costs ($) = Management + Maintenance + Bonus + Insurance + Waste management + Utilities + Rent

= 4855 + 2213 + 1650 + 1904 + 988 + 3159 + 3960

= 1279

Total variable cost ($) = Food + Food labor + Supplies

= 27653 + 18386 + 3133

= 49172

Unit variable cost ($) = 49172 / 8560 = 5.74

Break-even number of meals = Fixed cost / (Unit price - Unit variable cost)

= $1279 / (10.35 - 5.74)

= $1279 / $4.61

= 277