Weekly break-even sales volume and sales revenue

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Reference no: EM13855465

Part I:

1. Based upon expected daily sales, what is the amount of weekly profit (loss) that the Cafe can expect to make? Ignore depreciation.

2. What is the weekly break-even sales volume & sales revenue, by product? Again, ignore depreciation.

3. If the Cafe wanted to generate weekly profits of $500, what is the weekly sales volume & sales revenue that they would need to achieve? Again, ignore depreciation.

Part II:

Assuming the up-front capital costs are to be depreciated utilizing the straight-line method of depreciation over 10 years with no salvage value, and that depreciation is included as a fixed costs, please calculate the following:

4. Based upon expected daily sales, what is the amount of weekly profit (loss) that the Cafe can expect to make?

5. What is the weekly break-even sales volume & sales revenue, by product?

6. If the Cafe wanted to generate weekly profits of $500, what is the weekly sales volume & sales revenue that they would need to achieve?

Attachment:- hw.doc

Reference no: EM13855465

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