Last year’s manager, Jim Freeland, has advised you to be sure to add 10% of variable cost as a waste

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Last year’s manager, Jim Freeland, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories.
You estimate labor cost to be $250.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $50.00 for each booth per night, is also a fixed cost.
(a) What is break-even volume per evening performance?
(b) How much wine would you expect to sell at the break-evenpoint?

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