Question
3. Burgertown Ltd produces fast food burgers for sale to the public. The company has the following costs for a month: Bread buns Cheese
3. Burgertown Ltd produces fast food burgers for sale to the public. The company has the following costs for a month: Bread buns Cheese Depreciation Light and Heat Meat Rent Salad 800 1,000 2,000 1,000 3,000 5,000 3,000 6,000 Salaries The company expects to sell 10,000 burgers at $2.50 each all of which can be made using the above ingredients. a) Complete the simple income statement below: Sales Cost of Sales (Direct & Variable Costs) Gross Profit (Contribution) Overheads (Indirect/Fixed Costs) Net Profit b) What is the variable cost per burger? c) What is the Contribution per burger? Working column
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