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Exercise 11-1A (Static) Identifying cost behavior LO 11-1, 11-2 Rachael's Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant
Exercise 11-1A (Static) Identifying cost behavior LO 11-1, 11-2 Rachael's Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs eight people, one is a manager paid a salary plus a bonus equal to 4 percent of sales Other employees, two cooks, one dishwasher and four servers, are paid salaries. Each manager is budgeted $3,000 per month for advertising costs. Required Classify each of the following costs incurred by Rachael's Restaurant as fixed, variable, or mixed a Advertising costs relative to the number of customers for a particular restaurant b. Rental costs relative to the number of restaurants Cooks' salaries at a particular location relative to the number of customers d Cost of supplies (cups, plates, spoons, etc) relative to the number of customers Manager's compensation relative to the number of customers, f. Servers salaries relative to the number of restaurants Exercise 11-3A (Algo) Determining fixed cost per unit LO 11-1, 11-2 Stuart Corporation incurs the following annual fixed costs. Item Depreciation Officers' salaries Long-term lease Property taxes Cost $ 70,000 160,000 90,000 7.000 Required Determine the total fixed cost per unit of production, assuming that Stuart produces 5,000, 5.500, or 6,000 units (Round your answers to 2 decimal places.) 5.000 5,500 6,000 Units Produced Fixed cost per unit
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