Answered step by step
Verified Expert Solution
Question
1 Approved Answer
what is the weighted average contribution margin ratio? please explain how you did it Model Variables Price per pint Barrels of beer Barrels converted to
what is the weighted average contribution margin ratio? please explain how you did it
Model Variables Price per pint Barrels of beer Barrels converted to pints (X 248) Product mix Beer Product mix food Product mix Other sales $3.00 1,050 260,400 40% 55% 5% Contribution Margin Income Statement Sales Beer sales Food sales Other sales Total sales 40% $ 55% 5% 781,200 1,074,150 97,650 $ 1,953,000 Variable Costs Cost of goods sold Beer (15% of sales) Food (35% of sales) Other (33% of sales) Employee wages (25% of sales) Supplies (1 % of sales) Utilities (3% of sales) Misc (2% of sales) Total Variable costs Contribution Margin 117,180 375,953 32,225 485,250 19,530 58,590 39,060 1,130,787 822,213 140,000 30,000 20,000 40,000 Fixed Costs Salaries: manager, chef, bewer Equip & building maintenance Advertising Other cleaning, menus, misc. Admin: insurance and accounting Property tax Depreciation Interest on debt Total Fixed Costs Operating Profit 40,000 24,000 94,000 132,000 520,000 302,213Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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