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Can you please help with the following Question 2 Mrs Mac sells burgers and is considering whether to open a second outlet. The burgers have

Can you please help with the following

Question 2

Mrs Mac sells burgers and is considering whether to open a second outlet. The burgers have a single selling price and identical costs, regardless of where they are produced.

The following data is supplied:

Variable data per burger:

Selling Price$6.00

Purchase Costs$3.90

Selling & Promotional Costs$0.30

Annual Fixed Costs:

Rent$60,000

Salaries $200,000

Other$100,000

Required: (Consider each part independently)

( a )Calculate the annual break even point in unit sales.

( b )If 220,000 burgers were sold, calculate the profit or loss.

( c )Calculate how many burgers must be sold to achieve a target profit before tax of $167,940.

( d )Calculate how many burgers need to be sold to achieve an after tax profit of $126,000 if the tax rate is 30%.

( e )If the selling costs are $0.60 per unit, calculate the annual break even point in dollar sales.

( f )If the budget is to sell 300,000 burgers, what is the Margin of Safety?

( g )List two assumptions which need to be considered regarding Cost volume profit analysis.

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