Question
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June:
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Variable Element per Element per Actual Total $ 23,700 Month Revenue Liter $ 24.00 for June $ 150,540 Raw materials Wages $ 6,800 $5.85 $2.60 $ 38,930 Utilities $ 2,830 $ 1.40 Rent $ 3,800 $2,550 $770 1.55 Insurance Miscellaneous $ 12,400 $3,800 $ 2,550 $ 10,790 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example. wages should be $6.800 plus $2.60 per liter of gelato sold and the actual wages for June were $23,700. Via Gelato expected to sell 6.400 liters in June, but actually sold 6,600 liters.
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