Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 2-49 (Static) Cost Behavior and Forecasting (LO 2-5) Sophia's Restaurant served 5,800 meals last quarter. Sophia recorded the following costs with these meals. Variable

image text in transcribed
image text in transcribed
Exercise 2-49 (Static) Cost Behavior and Forecasting (LO 2-5) Sophia's Restaurant served 5,800 meals last quarter. Sophia recorded the following costs with these meals. Variable costs: $14,000 10,500 5,300 1,700 Ingredients used Direct Labor Indirect materials and supplies Utilities Eixed contat Managers salaries Rent Depreciation on equipment (straight-line, time basis) Other conta 22,000 18.000 2.000 3,000 Required: Suppose that Sophia expects to serve 15 percent more meals in the next quarter. Unit variable costs are expected to remain unchanged. However, Sophia knows that if the restaurant serves over 5,500 meals in a quarter, she must hire an additional manager (part-time) at a cost of $6.450 for the quarter. Other fixed costs are expected to increase by 10 percent Calculate the unit cost and the total cost if 5,750 meals are served next quarter (Round "Unit costs" answer to 2 decimal places.) tie basis Other costs 2,000 3,000 Required: Suppose that Sophia expects to serve 15 percent more meals in the next quarter. Unit variable costs are expected to re unchanged. However, Sophia knows that if the restaurant serves over 5,500 meals in a quarter, she must hire an additic (part-time) at a cost of $6,450 for the quarter. Other fixed costs are expected to increase by 10 percent. Calculate the unit cost and the total cost if 5,750 meals are served next quarter. (Round "Unit costs" answer to 2 decima Total variable cost Total fixed costs Total costs Unit costs

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

Costing

Authors: Terry Lucey

6th Edition

0826455107, 9780826455109

More Books

Students also viewed these Accounting questions

Question

Describe the criteria for an effective budget.

Answered: 1 week ago