The company has 6 stores. Each store is open an average of 12 hours per day each day of the year. The average sales amount per customer is $4.00. What is the average number of customers who must visit each store per hour to break even for the year

Respuesta :

Based on the information given, the average number of customers who must visit each store per hour to break even for the year will be 27.

Calculating the break even.

Firstly, the contribution margin ratio will be:

= [(Net income + Fixed cost) / Sales]

= (500,000 + 854,000) / 4,500,000

= 1,354,000 / 4,500,000

= 0.30

Then, the breakeven sales will be:

= Fixed cost / Contribution margin ratio

= 854,000 / 0.30

= 2,846,666.66

Breakeven customers will be:

= Breakeven sales / sales per customer

= 2,846,666.66 / 4

= 711,667

Breakeven customers in each store will be:

= Breakeven customers / number of stores

= 711,667 / 6

= 118,611

Breakeven customers per day will be:

= Breakeven customers in each store / days in a year

= 118,611 / 365

= 325

Breakeven customers per hour will be:

= Breakeven customers per day / hours in a day

= 325 / 12

= 27

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