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2.2 Use ADDENDUM A to calculate the break-even point in Rand value with a profit...

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Accounting

2.2 Use ADDENDUM A to calculate the break-even point in Rand value with a profit target given the following scenario of M&I that sells Milkshakes and Ice cream:
Selling price for Milkshakes: R 30 Cost price for Milkshake: R18
Selling price for Ice cream: R 15 Cost price for Ice cream: R7.50
Calculate the Gross profit
Calculate the Gross profit %
Milkshakes represent 30% of all sales and Ice cream 70% of all sales
Calculate the Weighted Gross Profit % for the Milkshakes and Ice cream
Calculate the Weighted Average Gross Profit % for the two products.
Fixed costs amount to R8000 and a profit target of R7500 is included in the break-even turnover with profit calculation.
Calculate the break-even point in Rand value with the stated profit target.
Total: 25 marks
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