Financial and Managerial Accounting

Assume a local gluten-free pizzeria, on Harrison street, reported the following results for June and July

	June	July
Unit Sales	2,500	2,900
Cost of Food Sold	$ 10,000	$ 10,600
Wages and Salaries	3,700	4,000
Rent	2,000	2,000
Depreciation	500	500
Utilities	1,400	1,500
Supplies	500	580
Total	$ 18,100	$ 19,180

a. 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 for			3500	pizzas
d. Determine the average costs for			3500	pizzas