As manager of the Best Drinks Company in Hayward, you would like to sell drinks at...

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As manager of the Best Drinks Company in Hayward, you would liketo sell drinks at a booth during the major celebration in theHayward’s Central Park. The following table provides informationabout the drinks that you will be selling: You estimate labor costto be $600 (2 people, $300 dollars each per day at the booth). Evenif nothing is sold, your labor cost will be still $600, so youdecide to consider this a fixed cost. Booth rental, $400, is also afixed cost. Apply the total fixed cost for your break-evenanalysis, and do not annualize the fixed cost.
Items Price per unit, $ Var. cost per unit, $ % of Sales
Soft drinks 1.50 0.45 0.20
wine 5.29 2.76 0.15
Coffee 1.99 0.76 0.30
Tea 1.50 0.35 0.05
Water 1.00 0.29 0.30
Questions What is the break-even volume (in dollars) for sellingdrinks at the booth? Show your calculations manually or use Excel.How much would you expect to sell at the break-even point? Presentand explain your calculations.

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As manager of the Best Drinks Company in Hayward, you would liketo sell drinks at a booth during the major celebration in theHayward’s Central Park. The following table provides informationabout the drinks that you will be selling: You estimate labor costto be $600 (2 people, $300 dollars each per day at the booth). Evenif nothing is sold, your labor cost will be still $600, so youdecide to consider this a fixed cost. Booth rental, $400, is also afixed cost. Apply the total fixed cost for your break-evenanalysis, and do not annualize the fixed cost.ItemsPrice per unit, $Var. cost per unit, $% of SalesSoft drinks1.500.450.20wine5.292.760.15Coffee1.990.760.30Tea1.500.350.05Water1.000.290.30Questions What is the break-even volume (in dollars) for sellingdrinks at the booth? Show your calculations manually or use Excel.How much would you expect to sell at the break-even point? Presentand explain your calculations.

Items	Price per unit, $	Var. cost per unit, $	% of Sales
Soft drinks	1.50	0.45	0.20
wine	5.29	2.76	0.15
Coffee	1.99	0.76	0.30
Tea	1.50	0.35	0.05
Water	1.00	0.29	0.30