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Question 2 - Part One Amanda Williams owns and operates a restaurant. Her fixed costs...

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Accounting

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Question 2 - Part One Amanda Williams owns and operates a restaurant. Her fixed costs per month are 30,000. She serves luncheons and dinners. The average total sales (excluding tip) is 27 per customer. Present variable cost per meal is 11. Note: It is assumed that each customer orders one meal. Requirement: A. What is the break-even-point (BEP) in number of meals served per month? (4 marks) of B. Calculate contribution margin ratio % per meal (3 marks) C. Assuming that restaurant is expected to serve 2,500 customers per month, calculate mar safety in units as well as percentage terms (4 marks) D. How many meals must she serve to achieve a profit of 22,000 per month? (4 marks) (Total: 15 marks)

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