1-3-4-Breakeven-Point

Bravo Burgers has the following financial information for the month of May.

(a) Using the information in the table, calculate the level of output required to breakeven in May. You are advised to show your workings.

(2)

Step 1: Calculate the variable costs per burger

(1)

Step 2: Substitute the values into the breakeven formula

<img alt=”equals space fraction numerator 1 comma 730 over denominator stretchy left parenthesis 4.95 space minus space 2.30 stretchy right parenthesis end fraction equals space 652.83″ data-mathml=”<math style=”font-family:Arial” ><semantics><mrow><mo mathsize=”14px”>=</mo><mo mathsize=”14px”>&#160;</mo><mfrac><mrow><mn mathsize=”14px”>1</mn><mo mathsize=”14px”>,</mo><mn mathsize=”14px”>730</mn></mrow><mstyle mathsize=”14px”><mo stretchy=”true”>(</mo><mn>4</mn><mo>.</mo><mn>95</mn><mo>&#160;</mo><mo>-</mo><mo>&#160;</mo><mn>2</mn><mo>.</mo><mn>30</mn><mo stretchy=”true”>)</mo></mstyle></mfrac><mspace linebreak=”newline”/><mspace linebreak=”newline”/><mo mathsize=”14px”>=</mo><mo mathsize=”14px”>&#160;</mo><mn mathsize=”14px”>652</mn><mo mathsize=”14px”>.</mo><mn mathsize=”14px”>83</mn></mrow><annotation encoding=”application/vnd.wiris.mtweb-params+json”>{“fontFamily”:”Times New Roman”,”fontSize”:”18″,”autoformat”:true,”toolbar”:”<toolbar ref=’general’><tab ref=’general’><removeItem 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