Question
Part B (10 Marks) Yummy n Easy is a famous fresh ready-made meals business that operates in many suburbs in New South Wales. The selling
Part B (10 Marks) Yummy n Easy is a famous fresh ready-made meals business that operates in many suburbs in New South Wales. The selling price of a ready-made meal is $10. It is estimated that the company will incur a variable cost of $168,000 to make and deliver 24,000 meals (estimated production and sales). The companys estimated fixed cost is $51,000. Required You are required to calculate the following. Show all calculations. a) What is Yummy n Easys contribution margin ratio? (2 Marks) b) Calculate Yummy n Easys break-even point in units (meals). (2 Marks) c) Calculate Yummy n Easys break-even point in sales dollars. (1 Mark) d) (i) What is Yummy n Easys margin of safety ratio? (Round off the answer to the nearest 2 decimal places). (1 Mark) (ii) How can managers of Yummy n Easy use this margin of safety ratio information to manage the profitability of the business? (2 Marks) e) How many meals must the company sell to earn a target profit of $90000? (2 Marks)
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