I need help on this one also...Break - Analysis...anyone willing to privately tutor???

Question

Jane Tamlyn pd $225 to rent a carnival booth for four days. She has to decide whether to sell doughnuts or popcorn. Doughnuts cost $1.80 per a dozen and can be sold for $3.60 per a dozen...Popcorn will require a $113 rental fee for the popcorn maker and $0.80 per bag of popcorn for the popcorn, butter, salts, and bags of popcorn: a bag of popcorn could sell for $.45.
1. I need help on compute of the break--even point in dozens of doughnuts to sell decides to sell doughtnuts exculsively and the break-even point in bags of popcorn if she decides to sell popcorn exclusively.
2. Jane estimate that she can sell either 75 doughnuts or 45 bags of popcorn every hour the carnival is open (10hours a day for four days). Which product should she sell

Thank you for whomever can honestly help without critisim!!!!

Answer 1

DONUTS
With a cost of goods fixed at 50% , and a a $.15 GP, she Breaks even at $225/15 selling 1500 donuts.

She will 'break even' when sales reaches $450. or 125 dozen.

POPCORN
Costs of goods= $.45 per unit
Fixed costs
Booth $225
Popper $113
Total $338
Break even =338/.20 or 1690 bags.

However, I believe you have asked for the "Break even" point, when you may have meant which product would be more profitable. That is, if you sell at the expected hourly rate for the four days, with yields the most profit.

If that is what you really wanted to know, the sales of donuts
would be $900 with costs of $225+$450) or gross profit of $225

The pop corn would produce Gross sales of $1440 and bring only $212 or Sales of $1440-(225+790+113)

Donuts are more profitable, if sales estimates are on target.

Answer 2

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Answer 3

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