part b As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put togetherthus far:ItemSoft DrinkWineCoffeeCandySelling Price$2.00$2.75$2.00$1.00Variable Cost$0.65$0.95$0.75$0.30% of Revenue25253020Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $250.00 (5 booths with 2 peopleeach). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $50.00 for each booth per night, is also a fixedcost.a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $ 798.88 (round your response to two decimal places).b) Based on the given information, the per night break-even point in servings for wine =servings (round your response to one decimal place).

Find the given details below: Given details: Item Selling Price Variable cost % of revenue…

Answered: As manager of the St. Cloud Theatre…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: ITEMSELLING PRICEVARIABLE COST% OF REVENUE Soft Drink$1$0.6025 Wine1.750.9025 Coffee2.000.3530 Candy1.500.2020 You estimate labor cost to be $250.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $50.00 for each booth per night, is also a fixed cost. What is the break-even volume per evening performance? How much wine would you expect to sell each evening at the break-even point? Please solve the question using Excel OM.

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