Learning Team C

“Chinese Red Eyed

Chieftains!”
BEER CART PRESENTATION!

David “Toby
Meyers” and
Winston 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
= 123
And
Breakeven point is 158 beers @
$3.25
($325)(x) – ($0.64)(x) - $412 > 0
 10 -378.4profit-per- var. cost retail price total fixed Breakeven
item
20 -344.8 3.36 0.64 4 412 123
30 -311.2
40 -277.6
50 -244
60 -210.4
70 -176.8
80 -143.2
90 -109.6
100 -76
110 -42.4
120 -8.8
130 24.8
140 58.4
150 92
160 125.6
170 159.2
180 192.8
190 226.4
200 260
210 293.6
220 327.2
230 360.8
240 394.4
250 428
 10 -385.9profit-per- var. cost retail price total fixed
item Breakeven
20 -359.8 2.61 0.64 3.25 412 158
30 -333.7
40 -307.6
50 -281.5
60 -255.4
70 -229.3
80 -203.2
90 -177.1
100 -151
110 -124.9
120 -98.8
130 -72.7
140 -46.6
150 -20.5
160 5.6
170 31.7
180 57.8
190 83.9
200 110
210 136.1
220 162.2
230 188.3
240 214.4
250 240.5
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?