Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Financial and Managerial Accounting Information for Decisions

Authors: John Wild, Ken Shaw, Barbara Chiappetta

6th edition

78025761, 978-0078025761

More Books

Students also viewed these Accounting questions

Question

4. Jobe dy -Y 2 et by

Answered: 1 week ago