break-even point in value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
GHI Frozen BBQ Chicken produces and sells marinated chicken wings. The cost of to produce each 100 packets of their product consist of 50 kg of premium chicken wings costing RM700 and the ingredients for marinade costing RM15. The business also incurs RM4,000 monthly salary for the workers. Other expenses include RM500 monthly rental and RM700 monthly utility bills. The company can produce 500 packets per month and sells them at a price of RM17 per pack. Calculate the break-even point in value (RM).
a.RM8,840
b.RM2,550
c.RM7,769
d.RM13,413
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