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Burgertown Ltd produces fast food burgers for sale to the public. The company has the following costs for a month:
$
Bread buns 800
Cheese 1,000
Depreciation 2,000
Light and Heat 1,000
Meat 3,000
Rent 5,000
Salad 3,000
Salaries 6,000The company expects to sell 10,000 burgers at $2.50 each all of which can be made using the above ingredients.
a) Complete the simple income statement below:
$ $
Working column
SalesCost of Sales (Direct & Variable Costs)
Gross Profit (Contribution)
Overheads (Indirect/Fixed Costs)
Net Profit
b) What is the variable cost per burger?
c) What is the Contribution per burger?
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