Alan Myers is a sole trader. He opened a small a fish restaurant four years ago in Glasgow. Scotland. He invested £200,000 of his own money into the business. He specialises in his world famous “Tuna steak marinated in fresh lime and coriander, with secret spices”. With the help of his management accountant he has identified costs that are related to this particular dish, and has asked you to perform some further analysis. The costs shown below are based on serving 1,200 dishes, which is the monthly demand. Advertising £300 Coriander £60 Depreciation £200 Electricity £320 Lime £180 Manager’s salary £1,470 Rates £350 Secret spices £120 Wages £3,000 Tuna £4,800 Additional information ✓ Electricity is 75% variable, and 25% fixed. Wages are 80% fixed and 20% variable. ✓ The selling price for the tuna dish is £11.00 TASK 1 Calculate how many servings of the dish are required per month to break-even

Alan Myers is a sole trader. He opened a small a fish restaurant four years ago in Glasgow. Scotland. He invested £200,000 of his own money into the business. He specialises in his world famous “Tuna steak marinated in fresh lime and coriander, with secret spices”. With the help of his management accountant he has identified costs that are related to this particular dish, and has asked you to perform some further analysis. The costs shown below are based on serving 1,200 dishes, which is the monthly demand. Advertising £300 Coriander £60 Depreciation £200 Electricity £320 Lime £180 Manager’s salary £1,470 Rates £350 Secret spices £120 Wages £3,000 Tuna £4,800 Additional information ✓ Electricity is 75% variable, and 25% fixed. Wages are 80% fixed and 20% variable. ✓ The selling price for the tuna dish is £11.00 TASK 1 Calculate how many servings of the dish are required per month to break-even

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash And Marketable Securities

Section: Chapter Questions

Problem 69RSCQ

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