Johan recently open Johans Caf in the University District. Johan sell fruit juices. The average price of juice is RM3 per glass and each glass cost Johan an average RM 2.20. Johan hired a bartender and waiter at RM 3,000.00 and RM 2,000.00 per month, respectively. His rent, utilities and other fixed operating costs are RM 5,000.00 per month.

Johan is considering selling burgers during lunch hour. He feels that this will increase his daytime business, which is currently quite small. It will also allow him to be more competitive with other local caf that offer a wider variety of food and drinks.

Johan would like to sell the burgers for RM 1.80 each in order to be attractive to customers. Johan will buy buns for RM 1.20 a dozen and ground beef for RM 2.80 per pound. Each pound of ground beef will make seven burgers. Other ingredients will cost and average of RM 0.20 per burger. Johan will also need to hire part time cook at RM 1,200.00 per month. Other additional fixed cost will run about RM 360.00 a month.

Required:

(a) Determine the break-even point for fruit juices only if Johan not sales burgers in units and RM.

(5 marks) (CLO1:PLO5:C2)

(b) If Johan sell only fruit juices, determine how many glasses he has to sell ach month to make a monthly profit of RM 2,000.00.

(5 marks) (CLO1:PLO5:C2)

(c) If Johan sell only fruit juices, determine how many glasses he has to sell each month to make monthly profit of 5% of sales.

(5 marks) (CLO1:PLO5:C2)

(d) Suppose Johan decide to add burgers to his menu. Determine how many burger does he need to sales to break- even on the burgers. Assume there is no effect on fruit juices sales.

(5 marks