Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carnival Eats is preparing for the upcoming festival season by taking a closer look at their manufacturing process. They advertise a Carnival Special of one

Carnival Eats is preparing for the upcoming festival season by taking a closer look at their manufacturing process. They advertise a Carnival Special of one pound of crab fries for $10, a bargain at most fairs and festivals. Because of the quantity of orders they typically receive, they fry the potatos in batches of 10 pounds at a time. Each batch will be 10 pounds, no matter what. They purchase the potatos (pre-seasoned) from their supplier for $ 3 per 5 pound bag. Frying the potatos takes the employee 20 minutes. Carnival East currently pays employees an hourly wage of $20. Because of the residue left from the crab seasoning, fresh oil must be used in each batch of fries. It takes $6 of oil to refill the fryer.
Required:
(a) How much does one ten-pound batch of crab fries cost to prepare?
(b) How much would it cost to prepare 15 pounds of crab fries?
(c) If Carnival Eats decreased the batch size to 5 pounds of potatos per batch, how much would it cost to prepare 15 pounds of crab fries? Assume that it would take the employee 10 minutes per batch under this new standard and the oil would still need changed after each batch.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

6th Canadian Edition

1260060411, 9781260060416

More Books

Students also viewed these Accounting questions