Determine how many glasses he has to sell each month

Assignment Help Accounting Basics

Reference no: EM132845732

Question - Johan recently open Johan's Café in the University District. Johan sell fruit juices. The average price of juice is RM3 per glass and each glass cost Johan an average RM 2.20. Johan hired a bartender and waiter at RM 3,000.00 and RM 2,000.00 per month, respectively. His rent, utilities and other fixed operating costs are RM 5,000.00 per month.

Johan is considering selling burgers during lunch hour. He feels that this will increase his daytime business, which is currently quite small. It will also allow him to be more competitive with other local café that offer a wider variety of food and drinks.

Johan would like to sell the burgers for RM 1.80 each in order to be attractive to customers. Johan will buy buns for RM 1.20 a dozen and ground beef for RM 2.80 per pound. Each pound of ground beef will make seven burgers. Other ingredients will cost and average of RM 0.20 per burger. Johan will also need to hire part time cook at RM 1,200.00 per month. Other additional fixed cost will run about RM 360.00 a month.

Required -

(a) Determine the break-even point for fruit juices only if Johan not sales burgers in units and RM.

(b) If Johan sell only fruit juices, determine how many glasses he has to sell ach month to make a monthly profit of RM 2,000.00

(c) If Johan sell only fruit juices, determine how many glasses he has to sell each month to make monthly profit of 5% of sales

(d) Suppose Johan decide to add burgers to his menu. Determine how many burger does he need to sales to break- even on the burgers. Assume there is no effect on fruit juices sales.

Reference no: EM132845732

Questions Cloud

What is the interest rate would he need : He invests RM 5,000 now and wants to have RM 6,000 to spend on the car when he buys it. What is the interest rate would he need

What new ways you utilize to achieve a successful reduction : "In this new 2020 decade, what new way/s would you suggest our cities/states (Boston/Massachusetts) utilize to achieve a successful reduction in existing.

Describe the kumeyaay early ways of life and advancements : Why do you think we began this week's discussions by learning about Mesoamerican societies and their contributions? How does this material make

Higher prevalence of side effects : A researcher has a hypothesis that a specific drug may have a higher prevalence of side effects among members of the African American population

Determine how many glasses he has to sell each month : If Johan sell only fruit juices, determine how many glasses he has to sell each month to make monthly profit of 5% of sales

Calculate z-score-standard score : Suppose the heights of adult women are normally distributed with a mean of 64 inches and a standard deviation of 2 inches. Michelle's height is 68 inches.

Determine the amount of interest expense reported : The loan was granted on January 1, 2020 for 8,000,000. Determine the amount of interest expense reported in 2022

How each resource supports english acquisition : Create a brochure for immigrant families in your community that contains at least three community resources that support English acquisition.

Compute mse and a forecast for week 7 : a. Construct a time series plot. What type of pattern exists in the data?

User Account

All Pages