Tina Whittington
HSM/260
May 11, 2014
Laura Huffaker
Figuring fixed costs, variable costs, and BEP Week 4
10.1 The highest number of meals served was 4,900 in December, with the lowest of meals being 3,500 in July making a difference of 1,400 of meals served, between the two months. The cost per meal variable is 1400÷$5500.00 for a total of $3.93
(WHDM’s) fixed cost is computed as follows $20,500.00-(3,500*$3.93) =$6,745.00
According to the following “formula:
PX=A+Bx
5.77x=$6,745+$3.93” (Study mode. com, 2013)
5.77-$3.93=$6,745+ ($3.93-$3.93)
1.84x=$6,745
1.84x*1.84x=$6,745*1.84x
“X=3,666 Monthly BEP
3,666*12= 43,992 BEP for the fiscal year”