Eileen's Restaurant Cvp Analysis

A. Eileen will need to sell 834 wellness burgers to break up to now separately month. This is computed by using the decided monthly be of $ m 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 increase of $5000 divided by the office make 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 persona 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 | part | |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 effervescent dri nks she made $9025 pre-tax dollars. This ! bit 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 closely sales she should be focusing on the mathematical ingathering 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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