Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Summer of 2020 posses several challenges for you as a recently hired MBA intern. You are hired to work in a consulting capacity (while

image text in transcribed

The Summer of 2020 posses several challenges for you as a recently hired MBA intern. You are hired to work in a consulting capacity (while working remotely) to provide an analysis for Al Dente's Italian Restaurant, a small family owned business in the North End. A financial income Statement is presented below: Sales $4,748,480.00 Cost of sales (all variable) $2,741,310.00 Gross Margin $2,007,170.00 Operating expenses: Variable $489,236.00 Fixed $376,068.00 Total operating expenses: $865,304.00 Administative expenses (all fixed) $993,300.00 Net operating income $148,566.00 This income statement presents the sales, expenses and pre-tax operating income for a local eating facility. At Al Dente, the average meal cost for lunches and dinners are $20 and $40 respectively. Al Dente serves both lunch and dinner 300 days per year and serves twice as many lunches as dinners. As the MBA intern you are to prepare a managerial accounting focused report to the owners of Al Dente's Italian Restaurant, to include the following: 1. Prepare a contribution margin income statement using the given financial data. Use the following format: Sales Variable costs Cost of sales Operating Total variable costs Contribution margin Fixed costs Operating Administrative Total fixed costs Net operating income

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_2

Step: 3

blur-text-image_3

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

Practical Auditing Techniques For ISO/TS 16949

Authors: Raymond Ness

1st Edition

978-0595273126

More Books

Students also viewed these Accounting questions