Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ben's Breakfast Bar The income statement for the month of July is presented below: R Revenue 46 800 Cost of Sales 31 200 Gross Profit

image text in transcribed
Ben's Breakfast Bar The income statement for the month of July is presented below: R Revenue 46 800 Cost of Sales 31 200 Gross Profit 15 600 Less other operating expenses Rent* 4 000 Depreciation* 1 500 Electricity and water 1 200 Wages - Waiting Staff 1 560 Wages - Kitchen Staff* 500 Sundries* 400 Net Income 6 440 NOTES Ben's breakfast bar sells a muffin and coffee combo at R12 each (i.e. for the muffin and coffee together). 3,900 combo's were sold during July. * These items are fixed costs and will remain unchanged if additional combo's are sold. All other expenses increase and decrease directly with changes in the number of combo's sold. Questions 1. If Ben sold 1 more combo, how much would the overall Net Income increase by? 2. If sales doubled, what would Ben's Net Income become? 3. How many combo's must be sold to break even in a month

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What the Numbers Mean

Authors: David Marshall, Wayne McManus, Daniel Viele

12th edition

007802529X, 1259969525, 978-1260565492

More Books

Students also viewed these Accounting questions

Question

Relax your shoulders

Answered: 1 week ago