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**light and heat 5,000 (Answer ALL Questions) Question 1 Raymond's specialist in spaghetti business has been operating for one year and the manager has given
**light and heat 5,000
(Answer ALL Questions) Question 1 Raymond's specialist in spaghetti business has been operating for one year and the manager has given the following details of the total costs incurred for the past year. The costs are based on the annual demand of 150,000 specialist spaghettis. RM Rent and rates 65,000 Light and Heat 5,00 Ingredient and food cost 95,000 Food container and plastic cutlery 8,200 Telephone 3,500 Staff wages 75,000 Manager's salary 52,000 Depreciation 30,000 Advertising 5,200 The light and heat, and the telephone costs are semi variable. In both cases, the fixed element is 30% of the total cost. The selling price of each specialist sandwich is RM 6. Required: a) Identify the cost into variable and fixed categories. (4 marks) b) Calculate the break-even point in units. (2 marks) c) Calculate the margin of safety (2 marks) d) The company has set a target profit of RM20 000. How many specialist sandwiches need to be sold to achieve this profit? (2 marks) (Total 10 marks)Step by Step Solution
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