Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation Assume a Papa John's restaurant has the following information available regarding costs at representative levels

image text in transcribedimage text in transcribed

Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation Assume a Papa John's restaurant has the following information available regarding costs at representative levels of monthly sales: Monthly sales in units 5,000 8,000 10,000 Cost of food sold $10,000 $16,000 $20,000 Wages and fringe benefits 4,200 4,320 4,400 Fees paid delivery help 1,200 1,920 2,400 Rent on building 1,300 1,300 1,300 Depreciation on equipment 500 500 500 Utilities 800 920 1,000 Supplies (soap, floor wax, etc.) 200 260 300 Administrative costs 1,600 1,600 1,600 Total $19,800 $26,820 $31,500 (a) Identify each cost as being variable, fixed, or mixed. Cost of food sold Variable Wages and fringe benefits Mixed Fees paid delivery help Variable Rent on building Fixed Depreciation on equipment Fixed Utilities Mixed Supplies (soap, floor wax, etc.) Mixed Administrative costs Fixed

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

Step: 3

blur-text-image

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

MIS Essentials

Authors: David M. Kroenke

4th edition

978-0133546590, 133546594, 978-0133807479

More Books

Students also viewed these Accounting questions

Question

What is the purpose of management accounting? LO.1

Answered: 1 week ago