Ronald has a Burger Restaurant located near a local University. The restaurant not only sells two types of burgers: Beef Burger and Chicken Burger but also sell Pizza. Information relating to the three products for the next month follows: Expected sales (units) Sales price Variable cost Beef Burger 1,000 £18 £8 Chicken Burger 600 £20 £6 The company has monthly fixed costs of £12,000 and a tax rate of 20%. Pizza 400 £10 £7 Required: a) Compute the company's expected profit (net income) for the upcoming fiscal period. b) Compute the company's sale mix. c) Assuming a consistent sales mix, how many units of each product type must the company sell to break even?
Ronald has a Burger Restaurant located near a local University. The restaurant not only sells two types of burgers: Beef Burger and Chicken Burger but also sell Pizza. Information relating to the three products for the next month follows: Expected sales (units) Sales price Variable cost Beef Burger 1,000 £18 £8 Chicken Burger 600 £20 £6 The company has monthly fixed costs of £12,000 and a tax rate of 20%. Pizza 400 £10 £7 Required: a) Compute the company's expected profit (net income) for the upcoming fiscal period. b) Compute the company's sale mix. c) Assuming a consistent sales mix, how many units of each product type must the company sell to break even?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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