# A restaurant is considering adding fresh brook trout to itsmenu Cus

Content type
User Generated
Rating
Showing Page:
1/1
A restaurant is considering adding fresh brook trout to
itsmenu. Customers would have the choice of catching
theirown trout from a simulated mountain stream or simply
ask-ing the waiter to net the trout for them. Operating
thestream would require \$11,925 in fixed costs per
year.Variable costs are estimated to be \$6.80 per trout.
The firmwants to break even if 900 trout dinners are sold
per year.
What should be the price of the new item?
Solution
Breakeven is where when total Cost = Total Revenue,
Let Selling Price = X
Totl Revenue = Total cost
X*900 = 11925 +6.80*900
900x = 18045
Hence, selling Price(X) = 18045/900 = \$ 20.05
Thanks :)

Unformatted Attachment Preview
A restaurant is considering adding fresh brook trout to itsmenu. Customers would have the choice of catching theirown trout from a simulated mountain stream or simply ask-ing the waiter to net the trout for them. Operating thestream would require \$11,925 in fixed costs per year.Variable costs are es ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

### Review

Anonymous
Excellent resource! Really helped me get the gist of things.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4