Question 1 Marks: 201 Coffeecup (Pty) Ltd operates a chain of coffee shops, with each shop making their own breads. The management accountant of Coffeecup (Pty) Ltd is reviewing a proposal to open a new shop The following estimates for the new shop are available: 1. Standard price and variable costs R per bread 20.00 Sales price Ingredients Electricity Contribution 17.00) (1.00) 12.00 2. Fixed cost per annum: R Bread labour Shop labour Rent of bakery and shop Totalfoed costs per annum 10000 10000 30 000 50 000 3. Budgeted sales per annum are 5 000 breads. Sales occurs evenly throughout the year. Assume 365 days in a year Required: Calculate the following figures for the proposed new shop Round all answers to the nearest constant, ie no decimals): 2.1.1 The contribution to sales ratio. 131 2.1.2 The break-even point in sales revenue per annum. 0.13 The break-even point in breads sold per annum (3) 2.1.4 The margin of safety in breads per annum The independent reduction 200 Q.1.5 (81 Coffeecup (Pty) Ltd wants to run a promotion during August. During this month breads will be sold at R18 each. This will lead to a monthly sales increase of 20% Total fixed costs for August is expected to be R4 500 which will include additional advertising costs. Calculate the total expected profit for August