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Annie s Homemade has been invited to submit a bid to cater a Memorial Day picnic with 6 0 servings of four flavors for a
Annies Homemade has been invited to submit a bid to cater a Memorial Day picnic with servings of four flavors for a total of prepackaged servings of ice cream. Annies average ingredient and packaging costs including cup, lid, spoon, and stickers are $ per serving. It would cater the event with one manager, whose is paid an annual salary of $or an average of $ per hour and two additional employees who are paid $ per hour. The wedding party expects Annies staff to remain onsite for two hours to serve ice cream. The roundtrip drive time to the event plus the tent setup and breakdown time is hours. The wedding is miles roundtrip and the company pickup trucks diesel fuel, diesel exhaust fluid, and oil expenses are $ per mile.
The manager catering the wedding would also spend hours manufacturing the ice cream for the picnic and portioning it into sixounce paper cups. He would be assisted by one employee for two hours who would apply a branded flavor sticker and an ingredient label before securing one lid on each cup of ice cream. The company can fulfill the order with its existing capacity and has gathered the following information with respect to its annual fixed overhead:
Instore Manufacturing overhead eg equipment depreciation, rent, utilities, insurance, etc. $
Number of servings produced per year including mobile servings
Pickup truck depreciation, insurance, registration, and vehicle tax..... $
Mobile sales equipment depreciation eg trailer, mobile freezer and serving tent $
Number of mobile servings sold per year.....
The total bid price splits into two piecesgross revenue and state and local sales tax Then, of the gross revenue will be paid to Annies Homemades corporate headquarters as a royalty fee. Since the picnic sponsor plans to pay with a credit card, of the total bid price will be paid to the credit card company for processing the payment. Assume Annies bids $ for this job or $ per serving If it wins the bid, how much of the total bid receipts:
Will be recorded as gross sales revenue?
Will be paid to governing authorities as sales tax?
Will be paid to Annies Homemade corporate headquarters?
Will be disbursed to the company that processes the credit card payment?
Will be recorded as net sales revenue?
If Annies bids $or $ per serving for this job, what profit loss would it realize using your total estimated job cost from requirement
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