Question
Yummy Thai Takeaway Shop delivers takeaway food to the residential apartments and houses near the central business district of Newtown. The takeaway shops monthly fixed
Yummy Thai Takeaway Shop delivers takeaway food to the residential apartments and houses near the central business district of Newtown. The takeaway shops 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 shops yearly break-even point in units (takeaway boxes); (3 mark)
(b) What is the contribution margin ratio? (3 marks) (c) Compute the shops 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)
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