Question 1 (Marks:20) Coffeecup (Pty) Ltd operates a chain of coffee shops, with each shop making their own breads. The management accountant of Coffeecup (Pty) Ltd is reviewing a proposal to open a new shop. The following estimates for the new shop are available: 1. Standard price and variable costs: R per bread 20.00 Sales price Ingredients Electricity Contribution (7.00) (1.00) 12.00 2. Fixed cost per annum: R 10 000 10 000 Bread labour Shop labour Rent of bakery and shop Total fixed costs per annum 30 000 50 000 3. Budgeted sales per annum are 5 000 breads. Sales occurs evenly throughout the year. Assume 365 days in a year. Q.1.5 Coffeecup (Pty) Ltd wants to run a promotion during August. During this month (8) breads will be sold at R18 each. This will lead to a monthly sales increase of 20%. Total fixed costs for August is expected to be R4 500 which will include additional advertising costs. Calculate the total expected profit for August