Question
Choose 3 menu items from the menu of the restaurant. Familiarize yourself with the products including the ingredients, processing method, general selling price in your
Choose 3 menu items from the menu of the restaurant. Familiarize yourself with the products including the ingredients, processing method, general selling price in your area, packaging requirements, and accessories
From the cost information you were able to find or generated on your own, provide responses in Microsoft Excel to the following question
- Compute the cost of each product under the simple/traditional costing method. For period costs, use direct labor hours.
- Compute the net operating profit margin of each product using the simple/traditional costing method.
- Compute the total overhead and period cost allocation under activity-based costing (ABC) assumptions for each product.
- Compute the per unit ABC cost of each product.
- Compute the net profit margin of each product using the ABC costing method.
- Compare the net profit margin of the products under the simple/traditional cost assignment and the ABC assignment for each product. Evaluate the difference.
**Make up any numbers that maybe missing for calculations**
Fettuccini Alfredo (assume makes 4 servings) Salad & Breadsticks ($4) by self otherwise included
$15.99 per plate
Cream Cheese $4 for 16oz Bag Salad $5 4 servings
Parmesan Cheese Fresh $4 2 cups 12 breadsticks $4 a bag
Butter $3 pack (4 sticks) Butter .50 for 12breadstick
Seasoning $2 per pack Garlic $.69 for 12breadstick
Noodles $3 pack 4 servings Dressing $1.50 per Salad
Spaghetti with meat sauce (17.99 per plate)
2 cans tomato paste $3
1 can tomato sauce 1.50
3lbs ground beef $20
Garlic .49
Onion .59
Noodles $5 family pack 10 servings
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