Rocky Cafe Sdn. Bhd. is a restaurant specialising in fusion food. The following menu lists...
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Accounting
Rocky Cafe Sdn. Bhd. is a restaurant specialising in fusion food. The following menu lists the food options that are available in the restaurant on a daily basis: The restaurant manager provided the following data for February 2020: Annual fixed costs for the restaurant are at RM132,000. Rocky, the owner, would like to earn (target net income) RM30,000 for April 2021. The restaurant is currently operating on a limited resources of direct labour hours available for its kitchen area. a) Determine the current weighted-average contribution margin (in Ringgit Malaysia) of Rocky Cafe Sdn. Bhd. for February 2020. (11 marks) b) What is the required sales (in units) for the restaurant to achieve the target net income of RM30,000 in April 2021 ? Show ALL workings for required sales in TOTAL and by the OPTIONS available. Round your answers to the nearest unit. ( 6 marks) c) Rocky is planning to hire an additional kitchen assistant to help his restaurant achieve his required sales target. The new kitchen assistant is expected to begin work in April 2021. Rocky would like to assign this new assistant to help with the Chicken Chop option. (i) Is Rocky's decision reasonable? (ii) Which food option is more justified to receive the extra help? Show relevant workings on the contribution margin with limited resources to support your
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