Question
A restaurant chain assesses its costs for ingredients, staff wages, and utilities over four quarters. Quarter Meals Served Ingredient Cost Cost per Meal (Ingredients) Staff
A restaurant chain assesses its costs for ingredients, staff wages, and utilities over four quarters.
| Quarter | Meals Served | Ingredient Cost | Cost per Meal (Ingredients) | Staff Wages | Cost per Meal (Wages) | Utilities Cost | Cost per Meal (Utilities) |
|---|---|---|---|---|---|---|---|
| 1 | 2,000 | $6,000 | $8,000 | $1,000 | |||
| 2 | 4,000 | $12,000 | $12,000 | $2,000 | |||
| 3 | 1,000 | $3,000 | $4,000 | $500 | |||
| 4 | 3,000 | $9,000 | $10,000 | $1,500 |
Required: a. Calculate the cost per meal for each cost. b. Classify each cost as fixed, variable, or mixed. c. Discuss the implications of these cost behaviors for menu pricing. d. Analyze the impact of these costs on the restaurant’s profitability. e. Propose measures to manage ingredient, staff wages, and utilities costs efficiently.
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Accounting Information Systems
Authors: Marshall B. Romney, Paul J. Steinbart
12th edition
132552620, 978-0132552622
