Reference no: EM132989489

A long-established café located in inner west Brisbane residential suburb is facing it's time to figure out their budget for the coming quarter. During the last quarter, the café had spent roughly $500 at local butcher, $200 at Vegetable barns plus $300 on coffee beans & and dry goods each week. The Café also has monthly rent of $3,000 for the venue and is responsible for it's electricity and gas bills which is roughly $500 a month. Fees for waste management is included in the rent. The coffee machine is due to half yearly service in the coming quarter, which normally cost $250 each time. Bill sent from the accountant to process accounting work from last quarter is worth $2,500, this includes professional fee of the accountant, relevant taxes and superannuation, and the bill is due sometime in the coming quarter. The café is run by owner's family who are rely on the profit of business. They however do hire a casual staff to help the peak time every weekend when they normally have double amount of businesses. The staff is rostered 4 hrs every Saturday and Sunday morning and got paid by legal minimum with required loading. Considering the café is in residential area, hence their business is relatively stable, and in order to seek improvement the café pays internet social media platform $100 every month to advertise. The Café sets the margin of it's menu on 75%.

Question:

With the information listed above. Please advise the café owner how much gross income the café must make each week in the coming quarter to "break even". Also explain the process how you have come up with the answer. In the last part of your answer, please provide why knowing "break even" point can benefit organisational control system in a small cafe.