REQUIREMENTS OF THE FIRST PART OF THE CASE
In order to answer the questions below, you may make additional assumptions, and add/change
fixed and variable costs (please clearly indicate all assumptions made).
1) Using the above information, determine the number of milkshakes you will need to sell to break
even. In order to do this, you will need to set a sales price as well as classify the above costs into
fixed or variable. (Hint: keep all costs on either a weekly, monthly or yearly basis throughout
your analysis). You also will need to vary assumption such as sales price, depreciable lives, and
sales mix.
2) Should you leave your job to open the milkshake shack?