Wtvx Case Study Solution

In: Business and Management

Submitted By natasha444
Words 291
Pages 2
(1) Total fixed costs that must be covered Salaries for food services Square foot rental Booth personnel Total fixed costs $ $ $ $ 20,000.00 4,800.00 1,260.00 26,060.00

The total fixed costs per game amount to $26,060.00 (2) Portion of costs associated to each item Soft Drinks (25% of $26,060) Coffe (25% of $26,060) Hot dogs (20% of $26,060) Hamburgers (20% of $26,060) Misc Snacks (10% of 26,060) Total fixed costs covered $ $ $ $ $ $ 6,515.00 6,515.00 5,212.00 5,212.00 2,606.00 26,060.00

(3 and 4) Unit and dollar sales at breakeven points We will be using the formula BE = Revenues = FC + VC and finding the value of P. Soft Drinks 1.5Q = 6,515 + .75Q .75Q = 6,515 Q = 8,686.66 Be Revenue for soft drinks is 13,029.99 Coffee 2Q = 6,515 + .5Q 1.5Q = 6,515 Q = 4,343.33 Breakeven revenue for coffee is 8,686.66 Hot Dogs 2Q = 5,212 + .8Q 1.2Q = 5,212 Q = 4,343.33 Breakeven revenue for hot dogs is 8,686 Hamburgers 2.5Q = 5,212 + Q 1.5Q = 5,212 Q = 3,474.66 Breakeven sales for Hamburgers is 8,687.50

Misc Snacks Q = 2,606 + .4Q .6Q = 2,606 Q = 4,343.33 Breakeven sales for Misc Snacks is 4,343.33 (5) Sales estimates per attendee for attendance of 60,000 and 35,000. Spending estimate for attendance of 35,000 Total breakeven sales is 43,433 / 35,000 1.24 spent for attendee Spending estimate for attendance of 60,000 Total breakeven sales is 43,433 / 60,000 .072 spent for attendee…...

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