Question
xxxx Restaurant operates in the Industrial area. Its raw material cost $ 5 per unit and also spends $ 2 per unit om electricity. xxxx
xxxx Restaurant operates in the Industrial area. Its raw material cost $ 5 per unit and also spends $ 2 per unit om electricity. xxxx pay $2500 per month on rent and a total monthly salary of $7200 . The Salaries relate to six employees who are on contract ( which allow them to ;paid the same amount ) even when the demand reduces. The selling price per plate is $15 . Assume xxxx sale Nhima only.
a) If the budgeted sales and production is 1500 per month , What is the budgeted profit (or loss) for the month?
b)What is the BEP (plates)
c) What is BEP revenue?
d) How many plates need to be sold to achieve a target profit of $7000 per year ?
e) what is Mar gin of Safety?
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