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Question 2: (30 Marks) Salma Traders makes and sell chicken sandwiches. They have decided to fix the selling price per sandwich at 0.500 baizas
Question 2: (30 Marks) Salma Traders makes and sell chicken sandwiches. They have decided to fix the selling price per sandwich at 0.500 baizas The following fixed costs are recorded OMR 100 rent OMR 50 License Fee Other information: Shredded chicken per Sandwich costs OMR 0.080. Garlic sauce per Sandwich costs OMR 0.020. Labour cost of making one Sandwich is OMR 0.040. OMR 0.030 is other costs per Sandwich. Required: A. What is the break-even sales volume? (3 Marks) B. What is the value? break-even (2 Marks) sales C. Calculate the profit/loss if Salma Traders sells 4,000 sandwiches in a month. (5 Marks) D. Calculate the Margin of Safety if 6,000 sandwiches are sold in a month and its relevance to the company Marks) (5 E. How many sandwiches must be sold in order to make a profit of OMR 3,000? (5 Marks) F. Calculate New Break Even Point in Units if Rent Increases by 10% and other cost unchanged. remained (5 Marks) G. What will be the Profit Loss if Selling Price per unit increases to 0.600 baizas with sales level being 2000 Units and all other costs remains constant? Marks) (5
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