Week 4 assignment 260

# Week 4 assignment 260 - because it was at 650 at \$2 now you...

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Fixed, Variable and BEP Assignment 10.1 10.2 10.1 Meals: High-Low, 4900-2500= 1400 Cost: High-Low, \$26000-\$20500= 5500 Variable cost per meal: \$5500/\$1400= \$3.93 Variable cost per low month: \$13,755 Fixed Cost: \$20500-(3500*\$3.93)= \$6745 BEP: (PX=A+BX)= 3665 is the break-even point for meals The profit that will be made after hitting the 45,000 meal mark will be approximately \$1,800. 10.2 The new BEP is 659. Is this a good solution for the company? I would think that it is
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Unformatted text preview: because it was at 650 at \$2 now you have more customers and \$4.50 so you only making a profit now. It’s very possible that there could be a slack of capacity because of the price of the paper. Right now it’s okay but later down the road you can very easily lose customers and ultimately lose money. So I would be careful and possibly find a better solution than this....
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## This note was uploaded on 08/07/2011 for the course HSM 210 taught by Professor Shellymcdowell during the Spring '11 term at University of Phoenix.

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