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Sophia's Restaurant served 6,400 meals last quarter. Sophia recorded the following costs with those meals. Variable costs: Ingredients used Direct labor Indirect materials and
Sophia's Restaurant served 6,400 meals last quarter. Sophia recorded the following costs with those meals. Variable costs: Ingredients used Direct labor Indirect materials and supplies Book Utilities Fixed costs: Managers salaries Rent Depreciation on equipment (straight-line, time basis) Other costs $15,400 13,300 8,100 4,800 29,000 25,000 9,000 5,800 Required: Suppose that Sophia expects to serve 20 percent more meals in the next quarter. Unit variable costs are expected to remain unchanged. However, Sophia knows that if the restaurant serves over 7,040 meals in a quarter, she must hire an additional manager (part-time) at a cost of $8,700 for the quarter. Other fixed costs are expected to increase by 10 percent. Calculate the unit cost and the total cost if 7,680 meals are served next quarter. (Round "Unit costs" answer to 2 decimal places.)
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