Question
John Smith is requesting your assistance in determining a cost equation for forecasting his expenses for his ABC restaurant. He provides costs at two extremes
John Smith is requesting your assistance in determining a cost equation for forecasting his expenses for his ABC restaurant. He provides costs at two extremes as follows:
| Monthly Covers | ||
|
| 1000 | 3000 |
| Salaries | $ 15,000 | $ 15,000 |
| Wages | $ 5,000 | $ 15,000 |
| Employee benefits | $ 4,000 | $ 6,000 |
| Supplies | $ 2,000 | $ 6,000 |
| Utilities | $ 5,000 | $ 8,000 |
| Rent | $ 8,000 | $ 8,000 |
| Operating expenses | $ 1,500 | $ 4,500 |
| Insurance | $ 1,000 | $ 1,000 |
Please use the table above to answer the question 37 to 40
37.
What costs are the mixed cost?
Group of answer choices
a. Salaries, Wage, and Supplies
b. Employee benefits and Supplies
c. Utilities, Rent, and Insurance
d. Employee benefits and Utilities
38.
What is the total fixed cost for ABC restaurant?
Group of answer choices
a. $30,000
b. $35,000
c. $30,500
d. $35,500
39.
What is the total variable cost per unit for ABC restaurant?
Group of answer choices
a. $11.00
b. $10.50
c. $12.00
d. $9.00
40.
If the restaurant 2,000 covers, what is the total cost?
Group of answer choices
a. $50,000
b. $50,500
c. $52,500
d. $55,000
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Using Microcomputers In Managerial Accounting
Authors: George Hildebrand
1st Edition
0938188275, 978-0938188278
