The kopitiam restaurant is open 24 hours a day and serves breakfast,lunch ,and dinner.The owner of the business has determined that fixed costs are RM24,000 per month.variable costs are estimated at RM9.60 per meal.The average total bill (excluding tax and tip) is $15 per customer. a) compute the break -even point in meals and volume in dollars. b) compute the number of meals that must be served if leeAnn family restaurant wishes to earn a profit of RM10,000
Question 2
The kopitiam restaurant is open 24 hours a day and serves breakfast,lunch ,and dinner.The owner of the business has determined that fixed costs are RM24,000 per month.variable costs are estimated at RM9.60 per meal.The average total bill (excluding tax and tip) is $15 per customer.
a) compute the break -even point in meals and volume in dollars.
b) compute the number of meals that must be served if leeAnn family restaurant wishes to earn a profit of RM10,000
c) Assume that fixed costs increase to RM30,000. How many additional meals must be served if the restaurant wishes to earn the same profit?
Break even point in meals = Fixed cost/Contribution margin per meal
Contribution margin per meal = Average total bill/ selling price - Variable cost
= 15 - 9.60
= RM 5.40
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