Crossroads Tavern is a short two part exercise on break-even analysis. In the first part, the owner and manager are attempting to assess the level of sales (measured in units and dollars) required for the firm to: (a) achieve a profit of zero; (b) achieve a target profit of $30,000; and (c) achieve a net cash flow of zero. In the second part, the manager is evaluating the idea of expanding the hours of operation, and is attempting to determine the sales volume necessary to make such an expansion feasible.
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