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Trumball Catering served 4 , 0 0 0 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used Direct labor
Trumball Catering served meals last month. Trumball recorded the following costs with those meals:
Variable costs:
Ingredients used
Direct labor
Indirect materials and supplies
Utilities
Depreciation on trucks and equipment straight
line, unit basis
Fixed costs:
Managers' salaries
Rent
Depreciation on equipment straightline, time
basis
Miscellaneous fixed costs
$
$
Required:
Trumball expects to serve percent more meals in the next month. Unit variable costs are expected to remain unchanged. The
controller at Trumball knows that if the business caters over meals in a month, the company must hire an additional manager
parttime at a cost of $ for the month. Miscellaneous fixed costs are expected to increase by percent.
Calculate the unit cost and the total cost if expectations for costs and volume are met next month.
Note: Round "Unit costs" answer to decimal places.
Answer is complete but not entirely correct.
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