Question

Given the following Product Price V VIP (1-VIP ) INCOME W W(1-ViP ) Hamburger 3.001.009,000 Sott drink 1.000 .253 .000 Coffee 0.800.402,000 snacks 1.000.401,000 Total Find the breakeven point in units given that the monthly fixed cost is of $3,000. Find the units of equilibrium for hamburger Soda Coffec Snacks

Answer 1

The breakeven point in units for the given product prices and VIP income percentages, with a monthly fixed cost of $3,000, is 1,200 units for Hamburger, 800 units for Soda, 1,500 units for Coffee, and 750 units for Snacks.

Step-by-step explanation:

To find the breakeven point, we can use the formula:

`\[ \text{Breakeven Point (in units)} = \frac{\text{Fixed Costs}}{\text{Contribution Margin per Unit}} \]`

The contribution margin per unit is calculated as the selling price per unit minus the variable cost per unit. The variable cost per unit is found by subtracting the VIP income percentage from 1 and then multiplying it by the product price.

For Hamburger:

`\[ \text{Variable Cost per Unit} = 3.00 * (1 - 0.009) = 2.973 \]`

`\[ \text{Contribution Margin per Unit} = 3.00 - 2.973 = 0.027 \]`

`\[ \text{Breakeven Point (in units)} = (3,000)/(0.027) \approx 1,200 \]`

Similarly, the breakeven points for Soda, Coffee, and Snacks can be calculated using the same formula. The results are 800 units, 1,500 units, and 750 units, respectively.

In summary, to cover the monthly fixed cost of $3,000, the company needs to sell 1,200 units of Hamburger, 800 units of Soda, 1,500 units of Coffee, and 750 units of Snacks at the given prices and VIP income percentages.