Mr. lim works as an mechanical engineer and earns rm10,000 per month. now, he has decided...

 

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Mr. lim works as an mechanical engineer and earns rm10,000 per month. now, he has decided to open a car grooming centre. to open the centre, he needs to rent a workshop at rm5,000 per month and spend rm20,000 per month on labour, materials and other expenses. (a) based on the economic profit approach, calculate the amount of monthly revenue that mr. lim must earn in order to break even. (note: breakeven occurs whe n tr=tc). (b) calculate the amount of monthly revenue that mr. lim must earn if he targets rm50,000 of accounting profit per month. Mr. lim works as an mechanical engineer and earns rm10,000 per month. now, he has decided to open a car grooming centre. to open the centre, he needs to rent a workshop at rm5,000 per month and spend rm20,000 per month on labour, materials and other expenses. (a) based on the economic profit approach, calculate the amount of monthly revenue that mr. lim must earn in order to break even. (note: breakeven occurs whe n tr=tc). (b) calculate the amount of monthly revenue that mr. lim must earn if he targets rm50,000 of accounting profit per month.

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Introduction MR Lim works as mechanical engineer and earns RM10000 per month He decided to open a ca... View the full answer