Eileen's Restaurant Cvp Analysis

A. Eileen will need to sell 834 wellness burgers to break up to now for each one month. This is computed by using the decided periodic be of $ kelvin divided up by the parting do per health burger of $1.20. $1000/($1.95-$.75) = 833.333333 B. If Eileen wanted to take aim $5000 pre-tax dollars each month she would own to sell 5000 health burgers each month. This is computed by using the unbending monthly costs of $1000 added with the pre-tax proceeds of $5000 divided by the office do per health burger of $1000. ($1000+$5000)/$1.20 = 5000 C. If Eileen wanted to make $9000 pre-tax profit each month by selling meal deals for $4.85, she would need to sell 9831 meal deals per month. This is computed by using the fixed monthly costs of $20,000 added with the pre-tax profit of $9000 divided by the theatrical role made per meal deal. Using the chart below you great deal see how much is made per meal deal. ($20,000 + $9000)/$2.95 = 9830.50847 | |Selling expense |Variable Cost | component | |Health Burger |$1.95 |$0.75 |$1.20 | |Mixed Salad |$1.95 |$0.90 |$1.05 | |12 ounce drink |$0.95 |$0.25 |$0.

70 | |Combined |$4.85 |$1.90 |$2.95 | D. For the month of May where Eileen change 8000 health burgers, 8500 salads, and 15, 000 fizzy drinks she made $9025 pre-tax doll! ars. This moment is computed by multiplying the contributions per event times the number of items sold. Then you need to total all the contributions together. Then damaging the fixed cost of $20,000 from the total contributions for the pre-tax profit. If Eileen is touch on to the highest degree sales she should be focusing on the mathematical proceeds that makes the most margin, or contribution. The health burger makes $1.20 per item compared to the 12-ounce drink, which only makes $.70 per item. Her highest contribution item...If you want to get a full essay, order it on our website: BestEssayCheap.com

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