Alan Myers is a sole trader. He opened a small a fish restaurant four years ago in Glasgow. Scotland. He invested £200,000 of his own money into the business. He specialises in his world famous “Tuna steak marinated in fresh lime and coriander, with secret spices”. With the help of his management accountant he has identified costs that are related to this particular dish, and has asked you to perform some further analysis. The costs shown below are based on serving 1,200 dishes, which is the monthly demand. Advertising £300 Coriander £60 Depreciation £200 Electricity £320 Lime £180 Manager’s salary £1,470 Rates £350 Secret spices £120 Wages £3,000 Tuna £4,800 Additional information ✓ Electricity is 75% variable, and 25% fixed. Wages are 80% fixed and 20% variable. ✓ The selling price for the tuna dish is £11.00 TASK 1 Calculate how many servings of the dish are required per month to break-even
Alan Myers is a sole trader. He opened a small a fish restaurant four years ago in Glasgow. Scotland.
He invested £200,000 of his own money into the business. He specialises in his world famous “Tuna
steak marinated in fresh lime and coriander, with secret spices”. With the help of his
accountant
perform some further analysis. The costs shown below are based on serving 1,200 dishes, which is
the monthly demand.
Advertising £300
Coriander £60
Electricity £320
Lime £180
Manager’s salary £1,470
Rates £350
Secret spices £120
Wages £3,000
Tuna £4,800
Additional information
✓ Electricity is 75% variable, and 25% fixed. Wages are 80% fixed and 20% variable.
✓ The selling price for the tuna dish is £11.00
TASK 1
Calculate how many servings of the dish are required per month to break-even
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