Question
3. A business student who recently completed Business Decision Baking has decided to set up a food cart opposite your Lucro Island hotel selling
3. A business student who recently completed Business Decision Baking has decided to set up a food cart opposite your Lucro Island hotel selling artesian chocolate in 1kg boxes to hotel guests. They have provided you with the following estimates for the next quarter: REQUIRED: Expected Sales (units) Selling price per unit Variable cost per unit Total fixed costs 25,000 $25 $5 $200,000 a) Calculate the breakeven point in units and sales dollars. Show your workings. b) Calculate the margin of safety in sales dollars. Show your workings. (2+1=3 marks)
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