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Adam Catering Company specializes in Arab-based foods in the Berlin area. The budget data for the year 2020 is as follows: Chicken Beef Selling price
Adam Catering Company specializes in Arab-based foods in the Berlin area. The budget data for the year 2020 is as follows: Chicken Beef Selling price (Euro) 15 20 Variable cost/u 9 12 Contribution Margin 6 8 Number of units 400,000 300,000 Based on past experience, it is anticipated that the fixed cost of 940,000 will be allotted to the year 2020. Required: 1. Compute the planned Net Income of the company in 2020, provided that the company relied on the internal source of finance and the Business profit tax is 14 percent 2. Compute the BEP under the sales mix, 3. What would be the case if the number of units inflated by 15%, other things remain. the same. (Sales mix analysis) 4.What would be the case if the number of units for the beef products reduced to 200000 as a result of market stagnation and the selling price reduced from 20 to 18 per meal. Other things remain the same. Find out the sales mix BEP under this change and make an analogy with part2
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