$3\mathrm{.}2$

REQUIRED

Study the information below and answer the following questions:

$3\mathrm{.}2\mathrm{.}1$ How many chicken burgers does Marcello need to sell per month in order to break even? $(4$ marks$)$

$3\mathrm{.}2\mathrm{.}2$ Marcello can offer a higher quality chicken burger if he spends $50\%$ more on purchasing

premium quality ingredients $($buns$,$ chicken fillets and other ingredients$).$ He could then

charge R$70$ for each burger. Would the higher quality chicken burgers or the regular

burgers lead to a higher contribution margin, if the expected sales are $4000$ units and

$4500$ units per month respectively? Motivate your answer. $(4$ marks$)$

INFORMATION

Marcello wants to sell chicken burgers from his food truck at a selling price of R$50$ each. He will purchase the

buns at R$36$ a dozen and chicken fillets at R$84$ per kilogram. Each kilogram of chicken fillet will be used for

seven chicken burgers. Other ingredients will cost an average of R$8$ per chicken burger. Marcello will hire a

cook at a cost of R$20000$ per month. Additional fixed costs will amount to approximately R$23200$ per month