1. Calcukate contributiion margin

2. Expected breakeven point

3. Target profit 3,000 permonth. Determine level of sales per month

-in unit

-in rm

4 Dgree of operating leverage for a shop to achieve target rm3000

Submay Burger Sdn. Bhd. offers franchising businesses to local entrepreneurs. Below are the costs expected to be incurred for a burger shop: RM600 per month RM600 per month 2% of sales revenue Rental of store space Equipment rental Advertising cost Royalty fee License fee Salaries Utilities 5% of sales revenue RM360 per year RM2,500 per month RM500 per month Insurance RM1,200 per year The average selling price for a burger is RM5, with the cost of food, RM2.50