Transcribed Image Text: FINANCIALS FOR 2015 Yalla Momos, which Goel had started with his small savings in 2012, generated AED504,000 in total sales and AED156,240 in revenue in 2015. The

Transcribed Image Text: FINANCIALS FOR 2015
Yalla Momos, which Goel had started with his small savings in 2012, generated AED504,000 in
total sales and AED156,240 in revenue in 2015. The average meal was priced at AED20,
including food and beverages; beverages accounted for approximately 20 per cent of revenue.
Goel was particular about the quality of the raw materials used, which included the white flour
dough as well as the meat and/or vegetable and cheese fillings. No compromise was acceptable
in terms of the quality of the food served. Apart from raw materials, other expenses included rent
and utilities, administrative costs, and depreciation. The rent for all three locations was
AED68,000 in 2015 and AED75,000 in 2016. Goel did not maintain very detailed financial
records, but kept a rough estimate of overall expenses (see Exhibit 1). The owners did not pay
themselves a salary, but shared in the profits of the business.
EXHIBIT 1: YALLA MOMOS INCOME STATEMENT FOR THE YEAR ENDING 2015 (IN AED)
Net Revenue
504,000
Expenses
Cost of food sales
Rent
Salaries
Administrative costs
Depreciation
151,200
68,000
54,000
23,000
30,200
13,000
15,800
Utilities
Miscellaneous expenses
Advertising costs
Interest
Net Profit
13,000
135,800
-Q1: Calculate the 2015 BEP and Margin of safety (MOS) in quantity and monetary terms.

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