Learning Team C “Chinese Red Eyed Chieftains!”BEER CART PRESENTATION!

David “Toby Meyers” andWinston 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 = 123And Breakeven point is 158 beers @ $3.25($325)(x) – ($0.64)(x) - $412 > 0 = 158

10 -378.4profit-per-item var. cost retail price total fixed Breakeven

20 -344.8 3.36 0.64 4 412 12330 -311.240 -277.650 -24460 -210.470 -176.880 -143.290 -109.6

100 -76110 -42.4120 -8.8130 24.8140 58.4150 92160 125.6170 159.2180 192.8190 226.4200 260210 293.6220 327.2230 360.8240 394.4250 428

10 -385.9profit-per-item var. cost retail price total fixed Breakeven

20 -359.8 2.61 0.64 3.25 412 15830 -333.740 -307.650 -281.560 -255.470 -229.380 -203.290 -177.1

100 -151110 -124.9120 -98.8130 -72.7140 -46.6150 -20.5160 5.6170 31.7180 57.8190 83.9200 110210 136.1220 162.2230 188.3240 214.4250 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?