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A summary of the budgeted Statement of Comprehensive Income of Macs Eatery for July 2023 is as follows: Sales R1 600 000 Expenses R1 760
A summary of the budgeted Statement of Comprehensive Income of Macs Eatery for July 2023 is as follows:
Sales R1 600 000
Expenses R1 760 000
Operating loss (R160 000)
Additional information: Macs Eaterys expenses are classified as fixed or variable. The fixed expenses (included in the statement above) are estimated at R800 000.
Study the information provided above and calculate the folllowing:
1. Break-even value 2. Sales value required to achieve an operating profit of R80 000, after spending an additional R400 000 on advertising
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