Break-Even Analyses
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Prepare a Break-even analysis for Admission sales, food and drink services
Admission sales will be $10.00 per person, the liquor bottles will be from $150.00 to $350.00 the drinks will be $11.00, beers will be $5.00 and everything from the menu will be $6.00
Weekly expenses
Fixed Costs: Salaries: $56,760
Bills: (water, electricity, gas, and trash) $1,200
Promotions: $2,500
Cabaret show: $1,200
Insurance premium: $1,500
Property taxes: $15,000 per year (whole building)
Rent: 0 the owner of the club owns the building where the club will be located.
Variable Costs:
Food/beverages $10,000
Live bands from Mexico $3,000 to $7,000 in some cases less
Contests (prizes) $200 weekly, $1,000 every 3 months if there are enough participants
Sales commissions: Waiters and waitresses will me making $15.00 for every liquor bottle sold.
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Solution Summary
This solution shows how to produce a break-even analysis in the given problem. The sales commissions for waiters and waitresses are determined.
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Answer:
Given that,
Admission Sales =$10.00
Liquor bottle=$150-$350
Or,
Average liquor bottle=($150+$350)/2=$250
Drinks=$11.00
Beer=$5.00
Everything from the menu=$6.00
Total Sales=$10+$250+$11+$5+$6=$2,82
Fixed Cost:
Fixed Cost (per week):
Salaries=$56,760.00
Bills (water, ...
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
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