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Trumball Catering served 5,100 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used Direct labor Indirect materials and
Trumball Catering served 5,100 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 (straight-line, time basis) Miscellaneous fixed costs $ 11,300 24,700 11,500 5,030 10,600 $ 34,200 19,700 13,100 5,700 Required: Trumball expects to serve 30 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 5,610 meals in a month, the company must hire an additional manager (part-time) at a cost of $3,808 for the month. Miscellaneous fixed costs are expected to increase by 15 percent. Calculate the unit cost and the total cost if expectations for costs and volume are met next month. Note: Do not round intermediate calculations. Round "Unit costs" answer to 2 decimal places. Answer is complete but not entirely correct. Total variable costs $ 82,020 > Total fixed costs $ 77,363 Total costs $ 159,383 Unit costs $ 24.02 X
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