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Ccost accoounting :BEP analysis

Fixed cost of restaurant = 21000/month
avg bill = 19/customer
variable cost s= 10.6 per meal

1. how many meals to attain profit of 8400/month
2. what is break even point per month
3 if fixed costs/rent go to 29925/mo and vaiable costs go to 12.50/meal, af price increase to 23/meal how many meals needed to make 8400/month profit

Solution Preview

1. how many meals to attain profit of 8400/month
Contribution /unit=19-10.6=8.4
no.of Meals to attain profit of 8400/month=(expected profit+fixedcost)/contribution per unit
...

Solution Summary

Solution contains all the details including steps,calculations and formulas to calculate break even point, expected sales to earn required profit.

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