show Original blog posting March 15 2016 Boswells Beanery Locallyowned specialty food product company in Northeast Ohio Products include coffee teas dips dressings sauces and seasonings ID: 703230
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Slide1
How much in sales does Boswell’s Beanery need to break even for its booth rental costs at a home and garden show?
Original blog posting (March 15, 2016)Slide2
Boswell’s Beanery Locally-owned specialty food product company in Northeast OhioProducts include coffee, teas, dips, dressings, sauces, and seasoningsAttends variety of craft shows each year, with booth rentals ranging from $350 to $5,000 per show
Source:
Steve and Kerrie Collins, Wadsworth, OhioSlide3
Question 1Would the booth rental fee be considered a fixed cost or a variable cost?Slide4
Question 2Assume that the booth rental fee at the Great Big Home + Garden Show is $4,200 for the ten-day show. How much in sales does Boswell’s need to break even on this show, assuming that the booth rental fee is the only fixed cost of the show?Slide5
Question 3The home and garden show runs for ten days. How much, on average, must Boswell’s sell each day of the show to break even?Slide6
Question 4Assume that 100,000 people visit the home and garden show each year spread evenly throughout the ten-day period. If 5% of the attendees purchase from Boswell’s at the show, how much must each customer purchase from Boswell’s for Boswell’s to break even on the booth rental fee?Slide7
Question RecapWould the booth rental fee be considered a fixed cost or a variable cost?Assume that the booth rental fee at the Great Big Home + Garden Show is $4,200 for the ten-day show. How much in sales does Boswell’s need to break even on this show, assuming that the booth rental fee is the only fixed cost of the show?
The
home and garden show runs for ten days. How much, on average, must Boswell’s sell each day of the show to break even?
Assume
that 100,000 people visit the home and garden show each year spread evenly throughout the ten-day period. If 5% of the attendees purchase from Boswell’s at the show, how much must each customer purchase from Boswell’s for Boswell’s to break even on the booth rental fee?Slide8
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Questions or comments?
Contact Dr. Wendy Tietz at
wtietz@kent.edu