# Break-Even Point - Finance/Accounting

Oct 2nd, 2015
Anonymous
Category:
Accounting
Price: \$5 USD

Question description

You are a marketing director for a Mexican Taco Restaurant located in Lynchburg, VA. The average order size of your customers is \$7.00 per order. That means that when all your food orders are divided by your total number of customers, the average order amount is \$7.00.

Your variable cost per order is \$3.00 in food costs and paper products. Of course, there are also fixed costs (whether you sell one or a hundred). These include your building lease (\$2,000 per month, electricity \$500 per month, and labor \$3,100 per month)

Using this formula, what is the break-even point? In other words, how many meals, at \$7.00, would need to be sold before you start making a profit?

(Top Tutor) josep23
School: Duke University

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