Cost Accounting

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 6,000

The 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
Sales

Cost 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?