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Calculate the break-even sales revenue in dollars

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Reference no: EM133008432

Coffee & Biscuit sells specialist coffee beverages from a rented cart at the local street market. They also supply free biscuits and napkins to their customers. Provided below are the details from the statement of profit or loss for March 2021.

$

Sales revenue 23,000
Cost of beverages 4,900
Cost of biscuits 1,100
Cost of napkins 200
Rent of Cart 2,000
Wages 6,000

Problem a) Calculate the net profit for March 2021 (ignoring taxes).

Problem b) If the cost of beverages, biscuits and napkins are classified as variable costs, and the rent of cart and wages are classified as fixed costs, calculate the break-even sales revenue in dollars.

Problem c) What is the current margin of safety in sales revenue?

Reference no: EM133008432

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