Essay
After reviewing Miriam's accounting and business operations for her lunch bar,you find that:
• her average figures for sales are based on 3 different lunches:
- a rice dish which sells for $8,of which last year she sold on average 50 per day
- a vegetarian dish which sells for $9,of which last year she sold on average 30 per day
- a meat dish which sells for $10,of which last year she sold on average 20 per day
• the figures were taken from her accounting results for the year from 1 January 20X1 to 31 December 20X1;she does not have results for January-June of the current (20X2)year,as her accountant is still finalising her tax records
• her vegetables and meat are trucked from farms just outside Palmerston North once a week.
a Briefly explain limitations in calculating Miriam's breakeven and target profits relating to the accounting and business operations information above.
b State 2 other external factors that limit the accuracy of Miriam's calculations.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Choose the correct statement: a budgeted Balance
Q2: Prepare Miriam's Budgeted Income Statement for the
Q4: 'Miriam's Munchies' prepares lunches for sale each
Q5: Variable costs:<br>A)change in direct proportion to output
Q6: Breakeven analysis enables a firm to estimate
Q7: Which of the following is a characteristic
Q8: Management by exception involves:<br>A)investigating all unfavourable variances<br>B)investigating
Q9: Choose the correct statement: a budget is:<br>A)a
Q10: Fixed costs:<br>A)remain constant regardless of output or
Q11: Which of the following is an advantage