Question: Save a copy Question 2 (11 Marks) John plans to start a milk and pizza business in 2022. Suppose John owns a rental premises from

 Save a copy Question 2 (11 Marks) John plans to start

a milk and pizza business in 2022. Suppose John owns a rental

Save a copy Question 2 (11 Marks) John plans to start a milk and pizza business in 2022. Suppose John owns a rental premises from which his rental earnings are AUD 3,000 per month. He asks the rental people to leave and uses the premises for the milk and pizza business. The table below represents John's January business summary: Item Cost (AUD) 1 Milk truck 120,000 Milk stainless cans 20,000 Milk cooler 40,000 2 litre milk packs (Number of packs bought depend on demand. Assume 30,000 January average expenditure) Pizza ingredients (Ingredients used depend on demand. Assume January 4,000 expenditure) HI5003 Final Assessment T1 2022 HOLMES INSTITUTE LESE 2 cashiers (Assume a cashier per section [Milk and Pizza]. Also, wages depend on 3,000 hours worked. Assume January average wages per cashier 2 bakers (Wages depend on hours worked. Assume January average wages per 3,500 baker) Pizza packaging boxes (Boxes depend on demand. Assume average January boxes 2,000 used 25,000 Pizza special oven i. Milk production per day: 300 litres per day Note: Assume 90,000 litres per month produced and bought. ii. Pizza production per day is 500 pizzas. Assume 15,000 pizzas per month are produced and all that are produced are sold

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!