Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me answer asap pleassse thnakyou Simon's specialist sausage sandwich business has been operating for one year and the manager has given the following

please help me answer asap pleassse thnakyou

image text in transcribed

Simon's specialist sausage sandwich 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 100,000 specialist sausage sandwiches. Rent and rates Light and Heat Ingredient and food cost Food container and plastic cutlery Telephone Staff wages Manager's salary Depreciation Advertising RM 58,000 5,100 89,000 7,800 2,100 69,000 48,000 28,000 3,800 The light and heat, and the telephone costs are semi variable. In both cases, the fixed element is 28% of the total cost. The selling price of each specialist sandwich is RM5.50 Required: a) Identify the cost into variable and fixed categories. (5 marks) b) Calculate the break-even point in units. (4 marks) c) Calculate the margin of safety in RM term. (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) e) Sketch the following graph, showing clearly labeled Total cost Total revenue Breakeven point Margin of safety . (7 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Auditing Today

Authors: Emile Woolf

6th Edition

0135894662, 978-0135894668

More Books

Students also viewed these Accounting questions

Question

What is the difference between qualitative and quantitative data?

Answered: 1 week ago