Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
Bartleby Related Questions Icon

Related questions

Question
As manager of the St. Cloud Theatre​ Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus​ far:
                                                                                                                   
Item
Selling Price
Variable Cost
​% of Revenue
Soft Drink
$1.20
$0.70
24
Wine
$2.00
$1.00
26
Coffee
$1.00
$0.35
30
Candy
$0.75
$0.30
20
 
Last​ year's manager, Scott​ Ellis, has advised you to be sure to add​ 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $250.00 ​(5 booths with 3 people​ each). Even if nothing is​ sold, your labor cost will be $250.00​, so you decide to consider this a fixed cost. Booth​ rental, which is a contractual cost at $80.00 for each booth per​ night, is also a fixed cost.

​a) Based on the information​ available, the per night​ break-even point in dollars for the St. Cloud Theatre Company​ = ​$_____ ​(round your response to two decimal​ places).

Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.