Case Detail :
Case Study
Coffee Cart Supreme sells hot and iced coffee beverages and small snacks. The following is last month's income statement.
|
Particulars
|
Amount $
|
Amount $
|
|
Revenue
|
|
5000
|
|
Cost of Beverage & snacks
|
2000
|
|
|
Cost of napkins, straws etc
|
500
|
|
|
Cost of rent cart
|
500
|
|
|
Employee wages
|
1000
|
4000
|
|
Pre tax profit
|
|
1000
|
|
Taxes
|
|
250
|
|
After tax profit
|
|
750
|
What is the total cost function for Coffee Cart Supreme? What is the tax rate for Coffee Cart Supreme?
Calculate the amount of sales needed to reach a target after-tax profit of $1,500.
What was Coffee Cart Supreme's degree of operating leverage and Coffee Cart Supreme's margin of safety in revenue last month?