Exercise
3.2 I. Assume that variable costs are not controlled and that
budgeted costs of sales for food and beverage increase to $600,000
and total sales are as budgeted ($1,665.472.20). Calculate profit
for Barnaby's Hideaway. All other costs remain the same. 2.
Calculate the new variable rate and new contribution rate, assuming
the same variable salaries and employee benefits. 3. Calculate the
break-even point for Barnaby's Hideaway using the new contribution
rate. 4. Using the new contribution rate, calculate the sales level
necessary for Barnaby's Hideaway to earn the budgeted profit of
$166,794.43. 5. Assum e that the new contribution margin falls to
$12.60. Calculate the number of customers necessary to break
even.
Homework Answers
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Exercise
3.2 I. Assume that variable costs are not controlled and that
budgeted costs of sales...
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