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Chapter 9, Question '7 Kelly Clarkton is the manager of Crunchy's Campus Cantina, located across the street from the main student housing facilities of State University. Kelly closes her bar at midnight on Friday and Saturday but has recently begun thinking about keeping the bar open until 2:00 am on both days. Kelly's last year sales, total cost of sales, and other variables costs are summarized below. If she decides to remain open until 2:00 am, the additional cost of stafng the bar would be $350 for each of the two hours Kelly would be open. Kelly wants to compute the sales volume necessaiy to justify staying open the additional two hours. Help Kelly make a good decision by completing the MS? worksheet she has developed, and then answer the questions that follow. Hint: See page 361 for help with this problem Additonal opening hours Cost per hour for additional staffing $350.00 Crunchy's Campus Cantina MSP Worksheet $2,100,000 100% Variable cost % of total sales Product cost % (of total sales) a. How much additional income each day would Kelly need to achieve to justify staying open for the additional two hours on Friday and Saturday? Answer: b. How much additional income each weekend would Kelly need to achieve to justify staying open for the additional two hours on Friday and Saturday

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