Question
Assume a local gluten-free pizzeria, on Harrison street, reported the following results for June and JulyJunJulUnit Sales2,5002,900Cost of Food Sold$ 10,000$ 10,600Wages and Salaries3,7004,000Rent2,0002,000Depreciation500500Utilities1,4001,500Supplies500580Total$ 18,100$
Assume a local gluten-free pizzeria, on Harrison street, reported the following results for June and JulyJunJulUnit Sales2,5002,900Cost of Food Sold$ 10,000$ 10,600Wages and Salaries3,7004,000Rent2,0002,000Depreciation500500Utilities1,4001,500Supplies500580Total$ 18,100$ 19,180a.Identify each cost as being fixed, variable or mixed.b. Determine the equation for total operating costs (Fixed + Unit Variable Cost * # of pizzas)c.Predict the total operating costs for4000pizzasd.Determine the average costs for4000pizzas
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th edition
978-1118334331, 1118334337, 978-1119036449, 1119036445, 978-1119036432
