Yummy Thai Takeaway Shop delivers takeaway food to the residential apartments and

houses near the central business district of Newtown.

The takeaway shop's monthly fixed expenses are $5 000. The selling price of a takeaway box

is $12, and it costs the shop $7 to make and deliver each takeaway box.

In the following requirements, taxes are ignored.

Required:

(a) Calculate the takeaway shop's yearly break-even point in units (takeaway boxes);

(3 marks)

(b) What is the contribution margin ratio? (3 marks)

(c) Compute the shop's monthly break-even sales revenue; (4 marks)

(d) How many takeaway boxes must the shop sell monthly to earn a target profit of

$70 000 for that month? (4 marks)