Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
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
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps with 1 images
Knowledge Booster
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
- Brit Traders is planning on buying some RAINCOATS to sell during the Spring season. Due to prevailing market prices and the estimated costs, it plans on selling each umbrella at $25. The store manager has been in some communication with an online vendor who is selling the RAINCOATS at discounted prices depending on the units bought. Below is the quantity discount structure offered by the vendor. Quantity Discount Structure At least Unit cost 0 14.25 150 12.50 300 11.00 450 10.50 600 8.75 The fixed cost for the store is $120 and a branding cost of $2.75 for each umbrella. The manager wants to order 500 umbrellas but is uncertain about the demand which could be between 200 – 800. He has also decided that in case all the umbrellas will not be sold before the end of the season, any leftovers will be sold at a clearance price of $9 for each umbrella. The store manager has approached you to help him build a spreadsheet model to help him in making a decision on how many pieces to buy Create a…arrow_forwardPlease do not give solution in image format thankuarrow_forwardUse the table provided below showing rooms available, rooms sold and rooms revenue for 7 properties (subject hotel + comp set) for one month to compute occupancy index for the subject hotel. Rooms Available (Supply) Rooms Sold (Demand) Revenue The subject hotel 10'000 7'000 700'000 Hotel A 9'000 3'000 400'000 Hotel B 9'000 8'000 700'000 Hotel C 10'000 7'000 700'000 Hotel D 000י7 5'000 500'000 Hotel E 11'000 8'000 700'000 Hotel F 8'000 4'000 400'000arrow_forward
- With most companies, some customers are more valued or profitable for the firm than others. This is valuable information for a company—they can then better direct marketing and other efforts related to reaching and serving the most profitable part of its customer base. Discuss the type of costing you believe should be employed by a service firm to best help them to ascertain customer profitability.arrow_forwardIn your own words, describe how you will use STAR reports to make decisions about room pricing and revenue management.arrow_forwardDr. Wei and Dr. Tusang have a small optometry practice, and they have been in business for over 15 years. They currently store charts in an offsite storage facility and do not have a retention plan or destruction policy. They are considering storing their records electronically. Dr. Wei saw your advertisement in the Journal of Optometry and phoned you for a consultation to discuss their options. What suggestion do you have for the doctors to reduce their off-site storage costs?arrow_forward
- The relationship between price and quantity supplied is typically O direct O inversearrow_forwardFollow the directions belowarrow_forwardYou are given the following information regarding sales and inventory levels over time for your firm: Year Sales Inventory 2015 $22,375 $7,200 2016 $22,929 $7,400 2017 $24,164 $7,600 2018 $24,642 $7,800 2019 $26,050 $8,000 2020 $27,083 $8,200 2021 $27,585 $8,400 2022 $28,775 $8,600 2023 $29,714 $8,800 Given this information, determine the level of safety stocks that the firm held for the five years starting in 2018 and ending in 2022.arrow_forward
- can you please help me how to find the 3 different pricing strategies that the Royal Ontario Museumuses and how are they used on the meusem ?arrow_forwardBriefly and exactly explain how does the inventory management impacts the performance of the supply chain .arrow_forwardThe cash discount is 1. the most common industry discount 2. given to the special vendors 3. Is given when they purchase a large quantity 4. given when the delivery is accepted earlyarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
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
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.