Question

Exercises and Problems – 10

Eggs Cetera expects the following customers quarterly.

Q1 – 10,000

Q2 – 15,000

Q3 – 20,000

Q4 – 18,000

Customers spend $10 per meal.   Food accounts for 80% of each bill, 20% is for beverages.

Food costs the café 75% of its selling price, while beverages cost 20%

a)    A quarterly sales forecast

b)    A quarterly contribution margin forecast

Answer 1