You are starting a mini restaurant in the campus, selling JUST NOODLES. You will be selling all the items using vending machines. There will be 5 machines available each selling a different kind of noodles : Mee mamak, Ipoh Laksa, Mee Jawa, Mee bandung dan Mee Kolok. All items are serve as a package - Noodle and drink at the price of RM2.00 per pack. The pack is supposed to be good for breakfast and lunch. You get your supply of noodle and drink at RM 1.50 each pack. You have an Operating team to handle the food from the factory to the vending machines that will add and replace food at every two hours. The machine only operate between 6.00am to 3.00pm. everyday. The operating expenses of the business are as follows: - Operating teams salaries and benefit RM 10,000.00 per month - Logistic costs RM 10,000.00 per month - Electricity costs RM. 5,000.00 per month - Vending machine depreciation - RM 30 per machine per day The vending machine can sell a maximum of 1,000 packs a day Required :

a. What is the break even point of the business? (3 marks)

b. What is the total operating overheads and the profit margin? (3 marks)

c. What is the Degree of Operating leverage? (5 marks)

d. What can you comment about the risk and prospect in this business? (4 marks)

Answer rating: 100% (QA)

Analysis a Breakeven Point Revenue per unit RM200 Cost per unit RM150 Contribution margin per unit RM200 RM150 RM050 Total fixed costs Operating teamR... View the full answer