January 4, 2019
QUESTION : No Comments

(Solved) : As a prospective owner of a club known as the Red​ Rose

As a prospective owner of a club known as the Red​ Rose, you are interested in determining the volume of sales dollars necessary for the coming year to reach the​ break-even point. You have decided to break down the sales for the club into four​ categories, the first category being beer. Your estimate of the beer sales is that 36,000 drinks will be served. The selling price for each unit will average $1.75; the cost is $1.25 The second major category is​ meals, which you expect to be 10,000 units with and average price of $10 and cost of $6. The third major category is desserts and​ wine, of which you also expect to sell 10,000 units, but with an average price of $2.75 per unit sold and a cost of $1 per unit. The final category is lunches and inexpensive​ sandwiches, which you expect to total 20,000 units at an average price of $6 with a food cost of $3.25. Your fixed cost (rent, utilities and so on) is $2,000 per month plus $2,200 per month for entertainment.

a) For Red​ Rose, the monthly​ break-even point in dollars​ = ​$___per month ​(round your response to two decimal​ places).

b) If Red Rose is open 30 days per​ month, then the expected number of meals that need to be sold each day​ = _____ meals per day

Expert Answer


Average selling price = beer sales * beer price + meals sales * price + desserts sales * price


Have a Comment on this Question?

Questions viewed by other students

  • QUESTION : Describe the challenges faced by US Customs and Border Protection agents

    1) Describe the challenges faced by US Customs and Border Protection agents attempting to secure the border. Be sure to include:
    What is the functional equivalent of the border?

    What is the Fourth amendment exception as it pertains to border searches?

    How are seizure statistics used to justify the mission of border security?

    There are many challenges that the US Customs and border protection agents face when it comes to securing the border. One main challenge that the Customs and border protection agents face is dealing with the fourth admendment right on search and seizures. When an agent stops someone at the border from crossing into the United States the Agent has to make sure they do everything by the book because they do not want t , , , ,

    view full answer
  • QUESTION : (Solved) : Management at your agricultural chemicals corporation has

    Management at your agricultural chemicals corporation has been dissatisfied with production planning. Production plans are created using best guesses of demand for each product, which are based on how much of each product has been ordered in the past. If a customer places an unexpected order or requests a change to an existing order after it has been placed, there is no way to adjust production plans. The company may have to tell customers it can’t fill their orders, or it may run up extra costs maintaining additional inventory to prevent stock-outs. At the end of each month, orders are totaled and manually keyed into the company’s production planning system. Data from the past month’s production and inventory systems are manually entered into the firm’s order management system. Analysts from the sales department and from the production department analyze the data from their respective systems to determine what the sales targets and production targets should be for the next month. These estimates are usually different. The analysts then get together at a high-level planning meeting to revise the production and sales targets to take into account senior management’s goals for market share, revenues, and profits. The outcome of the meeting is a finalized production master schedule. The entire production planning process takes 17 business days to complete. Nine of these days are required to enter and validate the data. The remaining days are spent developing and reconciling the production and sales targets and finalizing the production master schedule.

    Draw a diagram of the existing production planning process.

    Expert Answer

    view full answer