The annual break-even quantity beq the break-even revenue


Consider the following data from the “Corner Breakfast Shop”:

Salaries:                                                           $3900 a month

Paper supplies:

(Cups, plates, utensils, and napkins)               $0.20 per meal

Rent:                                                                $750   a month

Material:

(Bagels, cream cheese, coffee, sugar)             $0.85 per meal

Insurance:                                                        $35     a week

Property taxes                                                 $ 4260 a year

If the price for Bagel, cream cheese, and coffee is $2.50, Find :

a. The Annual Break-even Quantity (BEQ).

b. The Break-even Revenue (BER), using two methods.

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Financial Management: The annual break-even quantity beq the break-even revenue
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