Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income statement for the month of July is presented below: R 46 800 31 200 15 600 Revenue Cost of Sales Gross Profit
The income statement for the month of July is presented below: R 46 800 31 200 15 600 Revenue Cost of Sales Gross Profit Less other operating expenses Rent* Depreciation Electricity and water Wages - Waiting Staff Wages - Kitchen Staff* Sundries Net Income NOTES 4 000 1500 1 200 1560 500 400 6440 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
★★★★★
3.49 Rating (156 Votes )
There are 3 Steps involved in it
Step: 1
Amount 3900 units Per Unit Amount 7800 units Sales 46800 1200 93600 Variable Cost ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started