A new bar, O'Malley's Bar, has opened in a Logan Square village that sells various wine and beer beverages. Further, suppose it has added cocktails to its product line. Below are the assumed sales and cost data for the bar:
Fixed costs per month are $14,000.
Suppose O'Malley's Bar sells each month an average of:
?5,000 servings of wine
?3,000 servings of beer
?2,000 servings of cocktails
Using a sales dollar analysis, the monthly break-even point in sales dollars assuming the sales mix does not change will be:
A) $20,000
B) $39,000
C) $27,300
D) $18,500
Correct Answer:
Verified
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