Best Burger (BB) started operations as a small family business selling burger in a small stall in the Central Business District 35 years ago. Over the years, BB has garnered a strong clientele with its unique and flavourfully burger as well as the sweet sauce that complements the burger perfectly. With the growing clientele, the business has changed to a bigger location with air-conditioned. ?As the firm only operates via the one and only shop house, long queue is always during peak hours for dine-in, as this lead to increasing of takeaway sales over the years. Progressively, dine-in customers requested to take away two most popular products - burger spice and the sweet sauce. Both products are currently packaged and sold in packs, and in respect of the burger spice, they are prepared fresh. ?

With its strong reputation, BB has in recent years also started retailing through the local supermarket chains. Both the burger fresh spice and sweet sauce are sold in a standard sized vacuum-packs. The fresh spice's shelf life is seven days while the black sauce is three months.

According to the latest sales analysis for 20x8, about 31 percent of BB's fresh spice and 55 percent of its sweet sauce were sold through supermarkets. The company retails these two products at the same price as those sold at its shop house. The accounting section of BB has generated the following actual sales and costing details for 20x8.

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Fresh Spice Sweet Sauce Shop House Supermarket Shop House Supermarket Total Average daily sales 1,270 580 190 230 (packs) Number of days 310 310 310 310 Retail price per pack 6.00 6.00 4.00 4.00 ($) Direct materials per 1.74 1.74 0.785 0.785 pack ($) Revenue ($) 2,362,200 1,078,800 235,600 285,200 3,961,800 Less: Direct materials ($) 685,038.00 312,852.00 46,236.50 55,970.50 1,100,097 Direct labour ($) 39,370 17,980 57,350 1,637,792 747,968 189,363.50 229,229.50 2,804,353 Fresh Spice Sweet Sauce Shop House Supermarket Shop House Supermarket Total Average daily sales 1,270 580 190 230 (packs) Number of days 310 310 310 310 Retail price per pack 6.00 6.00 4.00 4.00 ($) Direct materials per 1.74 1.74 0.785 0.785 pack ($) Revenue ($) 2,362,200 1,078,800 235,600 285,200 3,961,800 Less: Direct materials ($) 685,038.00 312,852.00 46,236.50 55,970.50 1,100,097 Direct labour ($) 39,370 17,980 57,350 1,637,792 747,968 189,363.50 229,229.50 2,804,353

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