(Solved) : You Decide Scenario 2 . . .

Question Description

You are a marketing consultant for a specialty coffee bistro and bakery. The business has been operating for about a year and is still not earning a profit. Your role is to determine the breakeven point and make recommendations on changes to one or more of the 4 P’s: Product, Price, Promotion, and Place.

The breakeven point (BEP) is the point at which total cost and total revenue are equal. A breakeven analysis calculates the BEP as:

Breakeven Point = Total Fixed Costs / (Unit Price – Unit Variable Cost) or BEP = F / (P-V)

In our example, the BEP