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QUESTION 4 10 points Save Answer Pike Street Fudge makes and sells fudge in a variety of flavours in a shop located in the local
QUESTION 4 10 points Save Answer Pike Street Fudge makes and sells fudge in a variety of flavours in a shop located in the local public market. Data for a recent week are as follows: Revenue (2000 kg @ $4.80 per kg) $9 600 Cost of ingredients $3 200 Rent 800 Wages 4 800 8 800 Pre-tax Profit 800 Taxes (20%) 160 Afer-tax profit $640 All employees work standard shifts, no matter how much fudge is produced or sold. Required (a) Calculate the breakeven point in units and in revenue. (b) Calculate the number of units and the amount of revenues that would be needed for after-tax income of $3000. (c) Calculate the margin of safety in units and the margin of safety percentage. (d) Calculate the degree of operating leverage
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