Question
What is Gina's total contribution ? Please show solution On average on any given day, 80% of the chicken used in the soup consists of
What is Gina's total contribution ? Please show solution
On average on any given day, 80% of the chicken used in the soup consists of the leftover cooked chicken from the prior day. The remaining 20% consists of fresh chicken cooked for the soup then added. The building which houses the restaurant consists of two floors with the restaurant and storeroom on the first level and an office and office storage area on the second level. It has 2,000 square feet for the upper-level office and 100 for the storage area; the square footage for the lower level is 1,800 Sq. ft. for the restaurant and 700 sq.ft. for the storeroom. There are 3 workers: Gina, who takes a salary of $5,000 per month and two worker paid $20/hour. Gina orders the groceries and takes inventory. The two hourly employees serve the customers, pack the soup, prep the ingredients for the soup, cook the chicken, and clean up. Gina makes the soup and oversees the restaurant & is also the cashier. The hourly workers work 40 hour weeks. Gina sells the 8oz cup of soup for $3.99 and the 12 oz for $5.49. On average Gina sells 5,500 cups of soup a month: 3,000 of the 8 oz and 2,500 of the 12 oz. Gina has the capacity to make 6,000 cups of soup a month-in the same ratio as noted here (3,000:2,500).
REQUIREMENTS: What is the total contribution?
| MATERIALS | COST |
| 6 gallons of filtered water | $1.00 per five gallon jug |
| 3 pounds of chicken, breasts, thigh ground | .69 per pound for thighs, .99 for breasts, the ratio of breasts to thighs is 2:1, 2 pounds of breast meat to 1 pound of thigh meat |
| 1 pound of carrots | .39 per pound |
| 5 stalks of celery, chopped | .79 per bunch, average 8 stalks per bunch |
| 3 cups of dried egg noodles | $1.00 for a 36 oz. bag of noodles |
| 1 ounce of seasoning | $2.00 per pound |
| Salt and Pepper | .15 each |
| Condiments (misc. seasonings) | 0.50 |
| PACKAGING |
|
| 8 oz containers with lid | .75 for both |
| Spoon & napkins | average .25 per order (whether take out or eat-in) |
| 12 oz container with lid | .90 for both |
| LABOR |
|
| Time to grind chicken | 15 minutes for 5 pounds |
| Time to chop celery | 15 minutes for whole bunch |
| Time to chop carrot | 10 minutes per pound |
| Time to cook the chicken | 20 minutes total |
| Packaging time | average 5 minutes |
| Time to assemble ingredients & put in soup | 15 minutes per batch (5 gallons) |
| Time to reorder groceries | 1 hour per week |
| Time to count inventory & determine need | 2 hours per week |
| Counter staff (serving in customers) | 15 minutes per customer |
| Cleaning work | 2.5 hours a day |
| To-go time | 10 minutes per order |
| Time to complete acctg & tax requirements | 3-5 hours per week |
| OVERHEAD |
|
| Utilities | $800 per month |
| Rent on building | $3,200 per month |
| Depreciation of Kitchen equipment | $700 per month |
| Depreciation of Office equipment | $1000 per month |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th edition
978-1118334331, 1118334337, 978-1119036449, 1119036445, 978-1119036432
