As manager of the Best Drinks Company in Hayward, you would like to sell drinks at a booth during the major celebration in the Hayward's Central Park. The following table provides information about the drinks that you will be selling:nYou estimate labor cost to be $600 (2 people, $300 dollars each per day at the booth). Even if nothing is sold, your labor cost will be still $600, so you decided to consider this a fixed cost. Booth rental, $400, is also a fixed cost. Apply the total fixed cost for your break-even analysis, and DO NOT annualize the fixed cost. Also, to identify the beak-even point (in dollars and units ) for each item, you DO NOT need to divide the total break-even point (in dollars) by 52 weeks.
Questionsn What is the break-even volume (in dollars) for selling drinks at the booth? Show your calculations manually or use Excel.
nHow much would you expect to sell at the break-even point? Present and explain your calculations.