Perform the following analysis: Mixed Costing Problem (based on attachments)

1) Separate the fixed and variable costs from the mixed costs.

2) Determine the relevant costs for Break-even analysis:

• Revenue
• Variable costs
• Contribution margin
• Operating overheads

3) Determine the Break even point of the company's.

4) Determine the Safety Margin of the company during the 5 years.

5) Determine the Degree of Operating Leverage. Give the implication of your findings.

6) How is the company performing lately?

7) Does the company have a prospect in the future?

Note: Calculate based on high-low method and ignore those unwanted details - subject Managerial Accounting

Safety Margin = (Current revenue BEP) / Current revenue

If Profit margin can't resolved based on the above info just estimate as RM1.00 minus variable costs

Costs Separation and Decision Making Restaurant Sedap Gila is a catering company that serves food and beverages at parties and business functions. Sedap Gila's business is seasonal, with a heavy scheduling during the summer months and holidays and a lighter schedule at other times. One of the major events Sedap Gila's customer request is a cocktail party. She offers a standard cocktail party has estimated the cost per guest as follows: Food and beverages RM16.00 RM4.90 Labour (0.5 hour @ RM9.80/hour) Overheard (0.5hour @ RM18.54/hour) RM9.27 Total cost per guest RM30.17 The standard cocktail party lasts three hours and Sedap Gila hires one worker for every six guests, so that works out to one and a half-hour of labour per guest. These workers are hired only as needed and are paid only for the hours they actually work. When bidding on cocktail parties, Sedap Gila adds a 14% mark-up to yield a price of about RM32.00 per guest. She is confident about the estimates of the costs of food and beverages and labour but is not as comfortable with the estimate of overhead cost. The RM18,54 overhead cost per labour hour was determines by providing total overhead expenses for the last 12 months by total labour-hour for the same period Monthly data concerning overhead costs and labour hours is as below: Month January February March April May June July August September October November December Total Labour Hours 2,200 2.500 2,700 3.900 4.200 5,200 6,200 7,200 6.700 4,200 3,800 6,200 55,000 Overhead Expenses RM42.000 RM46,000 RM47,000 RM51,000 RM54,000 RM58.000 RM61,000 RM64,000 RM62,000 RM55,000 RM51,000 RM59,000 RM650.000 The main problem: Sedap Gila has received a request to bid on a 160-guest fund-raising cocktail party to be given next month by an important local charity (The party would last the usual three hours). The restaurant would like to win this contract because the guest list for this charity event includes many prominent individuals that she would like to land as future clients. Sedap Gila is confident that these potential customers would be favourably impressed by her company's services at the charity event. Costs Separation and Decision Making Restaurant Sedap Gila is a catering company that serves food and beverages at parties and business functions. Sedap Gila's business is seasonal, with a heavy scheduling during the summer months and holidays and a lighter schedule at other times. One of the major events Sedap Gila's customer request is a cocktail party. She offers a standard cocktail party has estimated the cost per guest as follows: Food and beverages RM16.00 RM4.90 Labour (0.5 hour @ RM9.80/hour) Overheard (0.5hour @ RM18.54/hour) RM9.27 Total cost per guest RM30.17 The standard cocktail party lasts three hours and Sedap Gila hires one worker for every six guests, so that works out to one and a half-hour of labour per guest. These workers are hired only as needed and are paid only for the hours they actually work. When bidding on cocktail parties, Sedap Gila adds a 14% mark-up to yield a price of about RM32.00 per guest. She is confident about the estimates of the costs of food and beverages and labour but is not as comfortable with the estimate of overhead cost. The RM18,54 overhead cost per labour hour was determines by providing total overhead expenses for the last 12 months by total labour-hour for the same period Monthly data concerning overhead costs and labour hours is as below: Month January February March April May June July August September October November December Total Labour Hours 2,200 2.500 2,700 3.900 4.200 5,200 6,200 7,200 6.700 4,200 3,800 6,200 55,000 Overhead Expenses RM42.000 RM46,000 RM47,000 RM51,000 RM54,000 RM58.000 RM61,000 RM64,000 RM62,000 RM55,000 RM51,000 RM59,000 RM650.000 The main problem: Sedap Gila has received a request to bid on a 160-guest fund-raising cocktail party to be given next month by an important local charity (The party would last the usual three hours). The restaurant would like to win this contract because the guest list for this charity event includes many prominent individuals that she would like to land as future clients. Sedap Gila is confident that these potential customers would be favourably impressed by her company's services at the charity event