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i have done most of the work but i'm stuck on the last question which is on the last picture D. Perform the CVP analysis:
i have done most of the work but i'm stuck on the last question which is on the last picture D. Perform the CVP analysis: break even in units; break even in sales; margin of safety and operating leverage. please include explaination for the answers. Thank you
it's on food truck business on i would be able how to manage the financial aspect of the business but break everything down.
Monday-Friday 10:00 AM- 5:00 PM (7hrs) Saturday and Sunday Closed Location: Downtown LA Operation Format: 15 minutes max to cook a burger Each burger cost S12 Food Truck Project - Step 2 Cost Sheet Please determine all costs related to your food truck business using the following forms. Assume CSULA charges $4,000 per month, which includes the permit to open a food truck on campus, as well as the electricity and water usage on the food truck. 1. Direct material costs: list the materials you need for the product (your meal) and identify the costs of each material. Do not forget paper plates, forks, napkins, etc. You can use a website link, a screen cut, or a picture of the real price tag in a supermarket as a resource. The first line is given as an example. For simplicity purposes, gasoline costs or shipping costs are included in the overhead costs. Water does not count as a material since the water fee is included in the monthly charge of CSULA. If the amount is too small, we count it as indircet materials in the overhead section. 2. Direct labor costs: determine the labor cost per unit by calculating the labor cost to cook one meal. Note: if only the group members work on the food truck and the members share the profit of the food truck as an owner, then you can count direct labor cost as zero. 3. Overhead cost: list the overhead costs of your food truck: $4,000 charge of CSULA; gasoline costs/shipping costs of materials; depreciation/rent of the food truck and the cookware, trash bags, etc. (Limited to 10 items.) (Hint: For long-term assets, such as cookware and oven, determine the depreciation.) 4. Selling and Administrative Cost: advertising costs; computer/iPad; marker/supplies, etc. (Limited to 5 items.) (Hint: For long-term assets, determine the depreciation.) Use the information you put in Step 2 for the analysis in Step 3. Treat the cost per meal as variable costs and the cost per month as fixed costs. Food Truck Project - Step 3 Analysis Analyze your food truck. a. Estimate sales in units in September, October, and November 2018. Use the information you put in Step 2 for the analysis in Step 3. Treat the cost per meal as variable costs and the cost per month as fixed costs. Food Truck Project-Step 3 Analysis Analyze your food truck. a. Estimate sales in units in September, October, and November 2018. b. Determine the price of your product: $12. Prepare a sales budget for your food truck for September, October, and November this year. d. Perform the CVP analysis: break-even in units; break-even in sales; margin of safety; and operating leverage. Monday-Friday 10:00 AM- 5:00 PM (7hrs) Saturday and Sunday Closed Location: Downtown LA Operation Format: 15 minutes max to cook a burger Each burger cost S12 Food Truck Project - Step 2 Cost Sheet Please determine all costs related to your food truck business using the following forms. Assume CSULA charges $4,000 per month, which includes the permit to open a food truck on campus, as well as the electricity and water usage on the food truck. 1. Direct material costs: list the materials you need for the product (your meal) and identify the costs of each material. Do not forget paper plates, forks, napkins, etc. You can use a website link, a screen cut, or a picture of the real price tag in a supermarket as a resource. The first line is given as an example. For simplicity purposes, gasoline costs or shipping costs are included in the overhead costs. Water does not count as a material since the water fee is included in the monthly charge of CSULA. If the amount is too small, we count it as indircet materials in the overhead section. 2. Direct labor costs: determine the labor cost per unit by calculating the labor cost to cook one meal. Note: if only the group members work on the food truck and the members share the profit of the food truck as an owner, then you can count direct labor cost as zero. 3. Overhead cost: list the overhead costs of your food truck: $4,000 charge of CSULA; gasoline costs/shipping costs of materials; depreciation/rent of the food truck and the cookware, trash bags, etc. (Limited to 10 items.) (Hint: For long-term assets, such as cookware and oven, determine the depreciation.) 4. Selling and Administrative Cost: advertising costs; computer/iPad; marker/supplies, etc. (Limited to 5 items.) (Hint: For long-term assets, determine the depreciation.) Use the information you put in Step 2 for the analysis in Step 3. Treat the cost per meal as variable costs and the cost per month as fixed costs. Food Truck Project - Step 3 Analysis Analyze your food truck. a. Estimate sales in units in September, October, and November 2018. Use the information you put in Step 2 for the analysis in Step 3. Treat the cost per meal as variable costs and the cost per month as fixed costs. Food Truck Project-Step 3 Analysis Analyze your food truck. a. Estimate sales in units in September, October, and November 2018. b. Determine the price of your product: $12. Prepare a sales budget for your food truck for September, October, and November this year. d. Perform the CVP analysis: break-even in units; break-even in sales; margin of safety; and operating leverage Step by Step Solution
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