Day: October 29, 2022

Cedric plans to set up a business selling hamburgers.

He prepares his daily budget as follows.

• selling price per hamburger – £5.00
• cost of raw materials – £1.00
• daily wages and cooking costs – £960.00
• depreciation of equipment – £100.00

What is his budgeted cash-based break-even volume each day?

Select ONE answer:

1. 192
2. 212
3. 240
4. 265

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – £960 / (£5 – £1) = 240 units
4. Not correct

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