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Category > Accounting Posted 22 May 2017 My Price 4.00

Burger Queen Restaurant

Hello I'm slightly stuck on this question and how to workout the change in variable costs when production increases.

 

Burger Queen Restaurant had the following information available related to its operations from last year:

 

____________________________________________

Sales (150 000 units ) 500 000

Variable Costs 200 000

Contributed margin 300 000

Fixed Costs 150 000

Net Profit 150 000

____________________________________________

 

Required

a What is Burger Queen's operating leverage?

b If sales increased by 30 per cent, what would Burger Queen's net profit be?

Answers

SuperTutor
(15)
Status NEW Posted 22 May 2017 03:05 AM My Price 4.00

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