Beercart Breakeven Point Analysis
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Learning Team C “Chinese Red Eyed Chieftains!” BEER CART PRESENTATION! David “Toby Meyers” and Winston Butler
What’s the Problem? According to the probably purposefully cryptic and hidden meaning of the Assignment for week three in College Mathematics we were asked to present a breakeven analysis about a hypothetical situation of a weekend festival where you would sell beer. According to the Learning Team C Assignment Email this consisted of using the specific fixed costs included in the email to find out how many beers we would have to sell according to “realistic” prices of beer we choose. Simple Right?
Our Analysis. Our Fixed Costs: $200 Help (bartenders) $42 cups, napkins, etc. $170 Tables, rental space, etc. $0.64 per bottle In order to profit we would have to surpass Cost = $412 + .64 X
Our price Choices. In our analysis, we considered the Breakeven Point of sales of beer at a weekend festival at the sales prices of $4.00 and $3.25. Our analysis discovered that with the two prices that we picked that breakeven is Total Revenue - Cost (X)(Price) – (Variable Cost)(X) – 412 (total fixed costs) > 0 So the Breakeven point is 123 beers @ $4 ($4.00)(x) – ($0.64)(x) - $412 > 0 = 123 And Breakeven point is 158 beers @ $3.25 ($325)(x) – ($0.64)(x) - $412 > 0
10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250
-378.4profit-per- var. cost retail price total fixed Breakeven item -344.8 3.36 0.64 4 412 123 -311.2 -277.6 -244 -210.4 -176.8 -143.2 -109.6 -76 -42.4 -8.8 24.8 58.4 92 125.6 159.2 192.8 226.4 260 293.6 327.2 360.8 394.4 428
10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250
-385.9profit-per- var. cost retail price total fixed item Breakeven -359.8 2.61 0.64 3.25 412 158 -333.7 -307.6 -281.5 -255.4 -229.3 -203.2 -177.1 -151 -124.9 -98.8 -72.7 -46.6 -20.5 5.6 31.7 57.8 83.9 110 136.1 162.2 188.3 214.4 240.5
Other things Math to consider. 1. Competition, who are they and is our price lower, (or do we have to beat them up. Hey it’s the American Way!) 2. If we sell a bunch, who is going to help the drunks home? (NOT ME. ) 3. DO I GET FREE BEER?
What’s the Problem? According to the probably purposefully cryptic and hidden meaning of the Assignment for week three in College Mathematics we were asked to present a breakeven analysis about a hypothetical situation of a weekend festival where you would sell beer. According to the Learning Team C Assignment Email this consisted of using the specific fixed costs included in the email to find out how many beers we would have to sell according to “realistic” prices of beer we choose. Simple Right?
Our Analysis. Our Fixed Costs: $200 Help (bartenders) $42 cups, napkins, etc. $170 Tables, rental space, etc. $0.64 per bottle In order to profit we would have to surpass Cost = $412 + .64 X
Our price Choices. In our analysis, we considered the Breakeven Point of sales of beer at a weekend festival at the sales prices of $4.00 and $3.25. Our analysis discovered that with the two prices that we picked that breakeven is Total Revenue - Cost (X)(Price) – (Variable Cost)(X) – 412 (total fixed costs) > 0 So the Breakeven point is 123 beers @ $4 ($4.00)(x) – ($0.64)(x) - $412 > 0 = 123 And Breakeven point is 158 beers @ $3.25 ($325)(x) – ($0.64)(x) - $412 > 0
10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250
-378.4profit-per- var. cost retail price total fixed Breakeven item -344.8 3.36 0.64 4 412 123 -311.2 -277.6 -244 -210.4 -176.8 -143.2 -109.6 -76 -42.4 -8.8 24.8 58.4 92 125.6 159.2 192.8 226.4 260 293.6 327.2 360.8 394.4 428
10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250
-385.9profit-per- var. cost retail price total fixed item Breakeven -359.8 2.61 0.64 3.25 412 158 -333.7 -307.6 -281.5 -255.4 -229.3 -203.2 -177.1 -151 -124.9 -98.8 -72.7 -46.6 -20.5 5.6 31.7 57.8 83.9 110 136.1 162.2 188.3 214.4 240.5
Other things Math to consider. 1. Competition, who are they and is our price lower, (or do we have to beat them up. Hey it’s the American Way!) 2. If we sell a bunch, who is going to help the drunks home? (NOT ME. ) 3. DO I GET FREE BEER?
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