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no more Question C2 (25 marks) Imagine it is December 2021. Burrito Brothers is a fast-food Mexican restaurant owned by two (2) brothers and based
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Question C2 (25 marks) Imagine it is December 2021. "Burrito Brothers" is a fast-food Mexican restaurant owned by two (2) brothers and based in the UK. You have been hired to help the brothers, as neither of them have any management accounting knowledge. Immediately below are data relating to October and November 2021 that one of the brothers has provided to you: Total variable costs Meals orders October 9,600 87,600 November 8,400 80,400 You discover that on average, each customer order generated 10 of sales revenue. You also find out that each year, the restaurant closes in December for one (1) month. During December 2021, "Burrito Brothers" earned the prize for "best UK burrito". As a consequence, it is anticipated that there is likely to be an increase in customers in 2022. With only one (1) restaurant in operation, the brothers are considering how to take advantage of new opportunities. The brothers have confirmed they averaged 300 meals orders a day in 2021, but since winning their prize, they expect the number of daily orders to double when they re-open in January 2022! They currently have eight (8) staff in their restaurant who are each paid 30,000 per year. Their fixed costs also include other costs such as rent, electricity, and marketing Step by Step Solution
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