Question
Alfredo Coffee sells hot and iced coffee beverages and small snacks. The following is the last month's income statement. Particulars Taka Taka Revenue 5000 Cost
Alfredo Coffee sells hot and iced coffee beverages and small snacks. The following is the last month's income statement. Particulars Taka Taka Revenue 5000 Cost of Beverages and Snacks 2000 Cost of Napkins, Straws etc. 500 Cost of Rent Cart 500 Employee Wages 1000 4000 Pretax Profit 1000 Taxes 250 After Tax Profit 750 Page 1 of 3 Required: i. ii. Calculate the amount of sales needed to reach a target after-tax profit of 1500 Taka. Suppose next month's actual revenues are 8000 taka, pre-tax profit is 2000 Taka. Would actual costs be higher or lower than expected
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