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An airline pilot has just been laid off by the airline company due to the Covid-19 pandemic and he is contemplating to open a
An airline pilot has just been laid off by the airline company due to the Covid-19 pandemic and he is contemplating to open a small restaurant to sell food and drink with the help of his wife. Details for the business is shown in Table Q3. Renting of a shop lot near his residence is not a problem now since there are many shop lots available. And He can find a unit with rental of only RM2,000 per month. And He is planning to open the business for 30 days in a month. Table Q3 Monthly Item Price Cost Forecast Sales(units) 10 sticks of satay with drink 9.00 3.00 2000 Chicken Mandy with rice and drink 15.00 3.50 2500 Fried chicken with potato chips and 11.00 3.50 2500 drink Roti Naan cheese with chicken 15.00 3.80 2500 tandoori and drink i) What is the breakeven in RM and the daily sales in RM? ii) How many units of each item sold at the break-even point? ii) How would the breakeven assumptions affect his business in a real-world situation?
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