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140 146 146 os.53.eu-central-1.amazonaws.com/5d0888eb02bcc/6096646?response-cache-control=private te News G Bursary Documents.. Short-Term Decision Making: Tutorial 6 10 Marks BOSTON BAR The Boston Bar serves only three types

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140 146 146 os.53.eu-central-1.amazonaws.com/5d0888eb02bcc/6096646?response-cache-control=private te News G Bursary Documents.. Short-Term Decision Making: Tutorial 6 10 Marks BOSTON BAR The Boston Bar serves only three types of drinks, namely wine, spirits and cool drinks. The following income statements for the past financial week were constructed to reflect the contribution, which each type of drink contributes to the . overall profit of the bar. WINE SPIRITS COOLDRINKS TOTAL RANDS Sales 4 500 2 700 1 800 9 000 Total Variable Cost 2 700 1 530 1 620 5 850 Fixed Costs apportioned per department 1 080 720 450 2 250 Total Costs 3 780 2 250 2 070 8 100 Net Income/(Loss) 720 450 (270) 900 From the above income statements it is clear that the sales of cool drinks are making a weekly loss of R270.00. The management of the Boston Bar has to decide whether the sale of cool drinks should be stopped at the bar. Required: Prepare the contribution income statements for all the three types of drinks as well as for the whole bar. Advise management of the Boston Bar in deciding whether or not to discontinue the sale of cool drinks connex F4 F5 F6 F7 F8 F9 F10 F3 Pause % & 8 $ 7 8 9 O 5 6 R T Y U 4 5 F OHov BU S-T S X http|f Fac| You|* Log # 146 # 146 * 146 # 146 1-xythos.s3.eu-central-1.amazonaws.com/5d0888eb02bcc/6096646?response-cache-control=private%2 Translate News G Bursary Documents... decide whether the sale of cool drinks should be stopped at the bar. Required: Prepare the contribution income statements for all the three types of drinks as well as for the whole bar. Advise management of the Boston Bar in deciding whether or not to discontinue the sale of cool drinks Mark Allocation: 8 marks for contribution margin income statements 1 Marks for Layout 1 Marks for recommendation connex F1 F6 F7 F8 F9 F3 F4 F5 144 Pause

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