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Case Detail :
Case Study
Coffee Cart Supreme sells hot and iced coffee beverages and small snacks. The following is last month's income statement.
Particulars
Amount $
Revenue
5000
Cost of Beverage & snacks
2000
Cost of napkins, straws etc
500
Cost of rent cart
Employee wages
1000
4000
Pre tax profit
Taxes
250
After tax profit
750
What is the total cost function for Coffee Cart Supreme? What is the tax rate for Coffee Cart Supreme?
Calculate the amount of sales needed to reach a target after-tax profit of $1,500.
What was Coffee Cart Supreme's degree of operating leverage and Coffee Cart Supreme's margin of safety in revenue last month?
Verified Expert
The said paper is in relation to calculation of several items based on a given income statement. Here we have calculated the tax rate given tax amount and also find out the cost function. Moreover the sales volume has been calculated given the targeted profit. Then DOL has also been calculated.
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Kindly assist me in sloving the attached case study - Coffee Cart Supreme sells hot and iced coffee beverages and small snacks. The following is last month’s income statement. What is the total cost function for Coffee Cart Supreme? What is the tax rate for Coffee Cart Supreme?
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