The Coffee Club sells specialist coffee drinks from a rented cart on the beachside on...
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Accounting
The Coffee Club sells specialist coffee drinks from a rented cart on the beachside on the Gold Coast. Provided below is a summarised version of the income statement for July 2016
Sales revenue
$7,500
Less: Expenses
Cost of beverages
$750
Cost of napkins
750
Rent of cart
750
Wages
375
Total expenses
2,625
Profit
$4,875
(a) Calculate the contribution margin ratio. (Round answer to the nearest whole number.)
Contribution margin ratio %
(b) calculate the breakeven sales in dollars ?
Answer & Explanation
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