1)

Below is last month's income statement for Adays Taqueria:

Sales:
Food Sales	$42,500.00
Beverage Sales	$21,500.00
Total Sales	$64,000.00
Less Costs Of Sales:
Food Costs	$14,450.00
Beverage Costs	$3,010.00
Gross Profit		$46,540.00
Less Expenses:
Insurance	$2,500.00
Rent	$3,000.00
Labor	$18,000.00
Miscellaneous	$1,400.00
Utilities	$1,600.00
Advertising	$2,400.00
Office Supplies	$800.00
Depreciation	$2,000.00
		$31,700.00
Net Profit	$14,840.00

The managers at ACME Factory have decided to classify costs as follows:

1. All of Insurance, Rent, Advertising and Depreciation as Fixed Costs.

2. All of Food and Beverage Costs as Variable Costs.

3. 20% of Miscellaneous and Utilities as Fixed Costs and the rest as variable costs.

4. $200 of office supplies as Fixed Costs and the rest as variable costs.

5. Labor cost is to be distributed as 70% Variable Costs and 30% Fixed Costs.

Using the above information, calculate the following:

Total Variable Cost

Select one:

a. $14,840

b. $33,060

c. $16,100

d. $24,000

2)

Below is last month's income statement for Adays Taqueria:

Sales:
Food Sales	$42,500.00
Beverage Sales	$21,500.00
Total Sales	$64,000.00
Less Costs Of Sales:
Food Costs	$14,450.00
Beverage Costs	$3,010.00
Gross Profit		$46,540.00
Less Expenses:
Insurance	$2,500.00
Rent	$3,000.00
Labor	$18,000.00
Miscellaneous	$1,400.00
Utilities	$1,600.00
Advertising	$2,400.00
Office Supplies	$800.00
Depreciation	$2,000.00
		$31,700.00
Net Profit	$14,840.00

The managers at ACME Factory have decided to classify costs as follows:

1. All of Insurance, Rent, Advertising and Depreciation as Fixed Costs.

2. All of Food and Beverage Costs as Variable Costs.

3. 20% of Miscellaneous and Utilities as Fixed Costs and the rest as variable costs.

4. $200 of office supplies as Fixed Costs and the rest as variable costs.

5. Labor cost is to be distributed as 70% Variable Costs and 30% Fixed Costs.

Using the above information, calculate the following:

Net Profit as Percentage of Sales

Select one:

a. 33.00%

b. 23.19%

c. 50.00%

d. 34.00%

3)

Adays Restaurant has the following income statement:

Revenue:
Food Sales	$240,000
Beverage Sales	$86,000
Total Sales		$326,000
Cost of Sales:
Food Costs	$72,000
Beverage Costs	$15,480
Total Costs		$87,480
Gross Profit		$238,520
Expenses:
Operating	$8,000
Labor	$26,000
Miscellaneous	$4,000
Administrative	$14,000
Total Expenses	$52,000
NET PROFIT		$186,520

Calculate the food cost % and the beverage cost %

Select one:

a. Food Cost % = 40% Beverage Cost % = 40%

b. Food Cost % = 60% Beverage Cost % = 40%

c. Food Cost % = 30% Beverage Cost % = 18%

d. Food Cost % = 50% Beverage Cost % = 50%