Coffee & Biscuit sells specialist coffee beverages from a rented cart at the local street market....
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Coffee & Biscuit sells specialist coffee beverages from a rented cart at the local street market. They also supply free biscuits and napkins to their customers. Provided below are the details from the statement of profit or loss for May 2021. Sales revenue Cost of beverages Cost of biscuits Cost of napkins Rent of Cart Wages $ 2A,000 4,B00 1,100 200 2,000 6,C00 a) Calculate the net profit for May 2021 (ignoring taxes). b) If the cost of beverages, biscuits and napkins are classified as variable costs, and the rent of cart and wages are classified as fixed costs, calculate the break-even sales revenue in dollars. c) What is the current margin of safety in sales revenue? Coffee & Biscuit sells specialist coffee beverages from a rented cart at the local street market. They also supply free biscuits and napkins to their customers. Provided below are the details from the statement of profit or loss for May 2021. Sales revenue Cost of beverages Cost of biscuits Cost of napkins Rent of Cart Wages $ 2A,000 4,B00 1,100 200 2,000 6,C00 a) Calculate the net profit for May 2021 (ignoring taxes). b) If the cost of beverages, biscuits and napkins are classified as variable costs, and the rent of cart and wages are classified as fixed costs, calculate the break-even sales revenue in dollars. c) What is the current margin of safety in sales revenue?
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a To calculate the net profit for May 2021 we need to subtract all the costs including variable and ... View the full answer
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730363415
6th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver
Posted Date:
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