Hourna, w be visited three times each year by a team of workers, who wil drive f
ID: 384603 • Letter: H
Question
Hourna, w be visited three times each year by a team of workers, who wil drive from the central office to the site. Houma will be visited five times a year, which coordinates represent a good central location for this office? Map Coordinates City Covington 9.2 3.5 Donaldsonville 7.3 2.5 Houma7.8 14 Monroe 5.0 84 Natchitoches 2.8 65 New lberia S.5 2.4 Opelousas 5.0 3.6 Ruston 3.88.5 4. As a prospective owner of a club known as the Red Rose, you are interested in determining the volume of sales dollars necessary for the coming year to reach the break-even point. You have decided to break down the sales for the club into four categories, they are as follows Estimated Sales 30.000 10.000 10.000 Cost per unit Category Beer Meals $0,75 $s $ 1 Sales price per unit $1,50 $10 $2,50 Lunches/Sandwiches 20.000 $3,25 6,25 Your fixed cost is (ie. rent, utäities, and so on) $1800 per month plus $2000 per month for entertainment team in the club. a) What is your break even point in dollars per month? bj What is the expected number of meals each day if you are open 30 days a month?Explanation / Answer
1) Considering that Houma will be three times each year and other locations will be visited once each year. The coordinates of the central location are following
X = (9.2+7.3+7.8*3+5+2.8+5.5+5+3.8)/(1+1+3+1+1+1+1+1) = 6.2
Y = (3.5+2.5+1.4*3+8.4+6.5+2.4+3.6+8.5)/(1+1+3+1+1+1+1+1) = 3.96
Coordinates of the central location are (6.2, 3.96)
2) Considering that Houma will be five times each year and other locations will be visited once each year. The coordinates of the central location are following
X = (9.2+7.3+7.8*5+5+2.8+5.5+5+3.8)/(1+1+5+1+1+1+1+1) = 6.47
Y = (3.5+2.5+1.4*5+8.4+6.5+2.4+3.6+8.5)/(1+1+5+1+1+1+1+1) = 3.53
Coordinates of the central location are (6.47, 3.53)
4) Total estimated annual cost = 0.57*30000 + 5*10000 + 1*10000 + 3.25*20000 = 147500
Total estimated annual sales = 1.5*30000 + 10*10000 + 2.5*10000 + 6.25*20000 = 295000
Total sales units = 30000 + 10000 + 10000 + 20000 = 70000
Average cost per unit = 147500 / 70000 = 2.107
Average revenue per unit = 295000 / 70000 = 4.214
Breakeven volume per month = Total fixed cost per month / (revenue per unit - cost per unit)
= (1800+2000)/(4.214-2.107)
= 1803
a) Breakeven point in dollars per month = 1803*4.214 = 7600
b) Expected number of meals each day = 30000/(30*12) = 83.3
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