Refer to the original data, if the lunch and snack expenses increase by 20% due to increasing price of raw material. Compute the number of children if the MESRA Kids to meet the target operating income of RM5,000 per month. b) Briefly explain THREE benefits Cost Volume Profit analysis to the business.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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a) Refer to the original data, if the lunch and snack expenses increase by 20% due to
increasing price of raw material. Compute the number of children if the MESRA Kids
to meet the target operating income of RM5,000 per month.

b) Briefly explain THREE benefits Cost Volume Profit analysis to the business.

MESRA KIDS is a day care center that provide a safe and secure environment with quality
caregivers, so that parents have the peace of mind of knowing their children are safe while
they work. MESRA Kids charge each parent RM400 per child per month.
Its monthly variable expenses per child are as follows:
Lunch and snacks
Educational supplies
Other supplies
Total
Monthly fixed expenses consist of the following:
Rent
Utilities
Insurance
Staff salaries
General expenses
Total
RM
100
30
20
150
RM
2,500
250
200
4,100
450
7,500
Transcribed Image Text:MESRA KIDS is a day care center that provide a safe and secure environment with quality caregivers, so that parents have the peace of mind of knowing their children are safe while they work. MESRA Kids charge each parent RM400 per child per month. Its monthly variable expenses per child are as follows: Lunch and snacks Educational supplies Other supplies Total Monthly fixed expenses consist of the following: Rent Utilities Insurance Staff salaries General expenses Total RM 100 30 20 150 RM 2,500 250 200 4,100 450 7,500
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