What is the total cost function for coffee cart supreme

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Reference no: EM131486272

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 $

Amount $

Revenue

 

5000

Cost of Beverage & snacks

2000

 

Cost of napkins, straws etc

500

 

Cost of rent cart

500

 

Employee wages

1000

4000

Pre tax profit

 

1000

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.

Reference no: EM131486272

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6/5/2017 4:47:33 AM

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5/6/2017 3:08:59 AM

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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