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EMM5628 Sem 2 2019/2020

BEP Analysis – Online lecture 2, 9 May 2020

Due: 16 May 2020

Assume that a restaurant is presently operating at 6,000 meals per week with a
fixed cost of RM14,000. Present weekly profit is about RM2,000. The restaurant
management feels that they can increase business to 7,500 meals per week by
reducing price by 10 percent. As a result, profit is estimated to be increased by
50%. Determine:

a) The variable cost per meal


b) The selling price per meal (before and after management decision)

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