Calculating Costs (With Answers) (Page 20 of 28) in pdf

Calculating Costs (With Answers) Page 20

Completed Worksheet

A. Variable Cost (from Analyze Annual Revenue p.15)

1. Food % Revenue

44%

2. Paper % Revenue

3. Other Labor % Revenue

Total Variable Cost (1+2+3)

47%

B. Fixed Costs (From Convert Annual Expenses to Average Daily Costs p.17)

1. Average Daily Labor

$972.00

2. Average Daily Equipment

$44.00

3. Average Daily Overhead

$222.00

4. Average Daily Miscellaneous

$22.00

Total Fixed Cost (1+2+3+4)

$1,260.00

C. Revenue

1. Total Daily Breakfast Revenue (p.9)

$490.50

2. Total Daily Lunch Revenue (p.12)

$1,477.48

Total Daily Revenue (1+2)

$1,967.98

D. Calculate Break-Even Point

The break-even point is the point at which expenses and total revenue are exactly

equal. It can be expressed in dollars or as a percent of revenue.

To calculate the break-even point:

100%

% =

Total Variable Cost

Contribution Margin

$1,260.00

0.53

$2,377.35

Total Fixed Cost

Contribution Margin

Break-Even Point

(Calculate as a decimal)

(Round to the nearest whole dollar)

Calculating Costs - 20

Calculating Costs (With Answers) Page 20