Required:a) Refer to the original data, if the lunch and snack expenses increase by 20% due toincreasing price of raw material. Compute the number of children if the MESRA Kidsto meet the target operating income of RM5,000 per month.b) Briefly explain THREE benefits Cost Volume Profit analysis to the business. MESRA KIDS is a day care center that provide a safe and secure environment with qualitycaregivers, so that parents have the peace of mind of knowing their children are safe whilethey work. MESRA Kids charge each parent RM400 per child per month.Its monthly variable expenses per child are as follows:Lunch and snacksEducational suppliesOther suppliesTotalMonthly fixed expenses consist of the following:RentUtilitiesInsuranceStaff salariesGeneral expensesTotalRM1003020150RM2,5002502004,1004507,500

Given in the question: The lunch and snack expenses has been increased by 20% MESRA Kids charge per…

Refer to the original data, if the lunch and snack expenses increase by 20% due to increasing price of raw material. Compute the number of children if the MESRA Kids to meet the target operating income of RM5,000 per month. b) Briefly explain THREE benefits Cost Volume Profit analysis to the business.

Refer to the original data, if the lunch and snack expenses increase by 20% due to increasing price of raw material. Compute the number of children if the MESRA Kids to meet the target operating income of RM5,000 per month. b) Briefly explain THREE benefits Cost Volume Profit analysis to the business.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 71P

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