How many units of each dish type must the restaurant sell

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Reference no: EM133132648

Question - Anna's Dosa is located near Symbi university NY. The restaurant offers following three types of products. The information related to its products are given below:

 

Masala Dosa

Paneer Dosa

Idli

Expected sales (units)

1,000

400

200

Sales price

$15

$20

$12

Variable cost

$6

$8

$5

The monthly fixed cost for the restaurant is $10,000 and a tax rate of 20%.

Required -

a) Assuming that the restaurant maintains a consistent sales mix, how many units of each dish type must the restaurant sell to break even.

b) Compute the margin of safety in both dollar and percentage terms.

Reference no: EM133132648

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