Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. lim works as an mechanical engineer and earns rm10,000 per month. now, he has decided to open a car grooming centre. to open

 

Mr. lim works as an mechanical engineer and earns rm10,000 per month. now, he has decided to open a car grooming centre. to open the centre, he needs to rent a workshop at rm5,000 per month and spend rm20,000 per month on labour, materials and other expenses. (a) based on the economic profit approach, calculate the amount of monthly revenue that mr. lim must earn in order to break even. (note: breakeven occurs whe n tr=tc). (b) calculate the amount of monthly revenue that mr. lim must earn if he targets rm50,000 of accounting profit per month.

Step by Step Solution

3.47 Rating (147 Votes )

There are 3 Steps involved in it

Step: 1

Introduction MR Lim works as mechanical engineer and earns RM10000 per month He decided to open a ca... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu

6th Canadian edition

013257084X, 1846589207, 978-0132570848

Students also viewed these Management Leadership questions