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Ronald has a Burger Restaurant located near a local University. The restaurant not only sells two types of burgers: Beef Burger and Chicken Burger
Ronald has a Burger Restaurant located near a local University. The restaurant not only sells two types of burgers: Beef Burger and Chicken Burger but also sell Pizza. Information relating to the three products for the next month follows: Expected sales (units) Sales price Variable cost Beef Burger 1,000 18 8 Chicken Burger 600 20 6 The company has monthly fixed costs of 12,000 and a tax rate of 20%. Pizza 400 10 7 Required: a) Compute the company's expected profit (net income) for the upcoming fiscal period. b) Compute the company's sale mix. c) Assuming a consistent sales mix, how many units of each product type must the company sell to break even? d) Assuming a consistent sales mix, if the company wishes to earn a net income of 40,000, how many units of each product type must be sold? e) Compute the margin of safety in both revenue and percentage terms.
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d a Contribution margin from Beef burger sales units sales price 1000 188 10000 variable cost C...Get Instant Access to Expert-Tailored Solutions
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