Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

please help 1-4 1. Given the following information for Carl's Cafeteria, use the high-low method of analysis to determine variable cost per meal. How much

image text in transcribedplease help 1-4

1. Given the following information for Carl's Cafeteria, use the high-low method of analysis to determine variable cost per meal. How much are fixed costs? If 1,850 meals are served, what are expected total costs? Week Meals served 1,500 1,600 1,800 Cafeteria costs $4,800 $5,080 $5,280 $4,900 $4,000 $5,100 $5,400 1,450 1,200 1,650 1,900 2. Joni operates a hair salon and must pay rent and utilities every month of $1,500. She charges $30 a haircut and uses $5 of supplies for every haircut (shampoo, conditioner, coloring agents, etc.) What is Joni's breakeven in units (haircuts)? What is Joni's breakeven in sales? What is Joni's margin of safety if she expects sales of $3,500? How many haircuts does Joni have to give to reach her target net income of $5,000? 3. Doug operates a taqueria and has to pay monthly rent and utilities of $2,000. He charges $1 a taco and the cost of meat, cheese, tomatoes, onions, and tortilla per taco is 30 cents. What is Doug's breakeven in units tacos)? What is Doug's breakeven in sales? If he expects sales of $3,500 what is his margin of safety? If Doug can cut his variable costs to 20 cents, how many tacos does he need to sell to make $3,000 net income? 4. Budget data for the Bidwell Company are as follows: Fixed Variable $1,000,000 Sales (100,000 units) Expenses: Raw materials Direct labor Overhead Selling and administrative Total expenses $300,000 200,000 $100,000 150,000 110.000 50.000 $210.000 $700.000 910.000 Net operating income $ 90,000 A) What is Bidwell's break-even sales in units? B) How many units would Bidwell have to sell to earn a net operating income of $150,000? C) If fixed expenses increased $31,500, what is the break-even sales in units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M. Datar, George Foster

12th edition

978-0131495388

Students also viewed these Accounting questions