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2 . 2 Use ADDENDUM A to calculate the break - even point in Rand value with a profit target given the following scenario of
Use ADDENDUM A to calculate the breakeven point in Rand value with a profit target given the following scenario of M&I that sells Milkshakes and Ice cream:
Selling price for Milkshakes: R Cost price for Milkshake: R
Selling price for Ice cream: R Cost price for Ice cream: R
Calculate the Gross profit
Calculate the Gross profit
Milkshakes represent of all sales and Ice cream of all sales
Calculate the Weighted Gross Profit for the Milkshakes and Ice cream
Calculate the Weighted Average Gross Profit for the two products.
Fixed costs amount to R and a profit target of R is included in the breakeven turnover with profit calculation.
Calculate the breakeven point in Rand value with the stated profit target.
Total: marks
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