The income statement for the month of July is presented below: R 46 800 31 200...

  

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The income statement for the month of July is presented below: R 46 800 31 200 15 600 Revenue Cost of Sales Gross Profit Less other operating expenses Rent* Depreciation Electricity and water Wages - Waiting Staff Wages - Kitchen Staff* Sundries Net Income NOTES 4 000 1500 1 200 1560 500 400 6440 Ben's breakfast bar sells a muffin and coffee combo at R12 each (i.e. for the muffin and coffee together). 3,900 combo's were sold during July. * These items are fixed costs and will remain unchanged if additional combo's are sold. All other expenses increase and decrease directly with changes in the number of combo's sold. Questions 1. If Ben sold 1 more combo, how much would the overall Net Income increase by? 2. If sales doubled, what would Ben's Net Income become? 3. How many combo's must be sold to break even in a month? The income statement for the month of July is presented below: R 46 800 31 200 15 600 Revenue Cost of Sales Gross Profit Less other operating expenses Rent* Depreciation Electricity and water Wages - Waiting Staff Wages - Kitchen Staff* Sundries Net Income NOTES 4 000 1500 1 200 1560 500 400 6440 Ben's breakfast bar sells a muffin and coffee combo at R12 each (i.e. for the muffin and coffee together). 3,900 combo's were sold during July. * These items are fixed costs and will remain unchanged if additional combo's are sold. All other expenses increase and decrease directly with changes in the number of combo's sold. Questions 1. If Ben sold 1 more combo, how much would the overall Net Income increase by? 2. If sales doubled, what would Ben's Net Income become? 3. How many combo's must be sold to break even in a month?

Answer rating: 100% (QA)

Amount 3900 units Per Unit Amount 7800 units Sales 46800 1200 93600 Variable Cost ... View the full answer