Cyd’s Corner Café

Scenario: Cyd’s Corner Café, a hamburger stand, is only open Monday through Friday from 11 a.m. to 7 p.m. How many hamburger meals does the stand have to sell to at least break even?

Fixed Costs:

1. Rent = $600 per month.
2. Salaries = $50 per employee, per day. Cyd’s Corner Café has two employees.
3. Utilities = $15 per day.
4. Cost of meal = $2 per meal.

1. Calculating rent for a 30-day month, if Cyd’s Corner Café sold 25 hamburger meals for the day, it:
   
   a. lost money
   b. broke even
   c. made a profit
   
   Show how you arrived at your answer.
   
   
   
   
   
   
2. Calculating rent for a 30-day month, if Cyd’s Corner Café sold 35 hamburger meals for the day, it:
   
   d. lost money
   e. broke even
   f. made a profit
   
   Show how you arrived at your answer.
   
   
   
   
   
   
3. Calculating rent for a 30-day month, if Cyd’s Corner Café sold 50 hamburger meals for the day, it:
   
   g. lost money
   h. broke even
   i. made a profit
   
   Show how you arrived at your answer.
   
   
   

Challenge Question:

Calculating rent for a 30-day month, how many hamburger meals would Cyd’s Corner Café have to sell to make a 25 percent profit for one day?

Cyd’s Corner Café Handout (PDF)