Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have 3 restaurants and have the following revenues and direct costs associated with each restaurant. You also had indirect costs that you paid

image text in transcribed

You have 3 restaurants and have the following revenues and direct costs associated with each restaurant. You also had indirect costs that you paid for all the restaurants such as advertising, management team and your salary, and other costs. You decided you will allocate those costs to each restaurant using the sales mix method. Find the operating income for each restaurant. Format BI Sales Direct Costs Contributory Income Indirect Costs Operating Income Sales Mix % Font family Font size Restaurant 1 $130,000 Restaurant 2 $70,000 ($39,690) $90,310 Restaurant 1 ($20,580) $49,420 Restaurant 3 $290,000 Total $490,000 ($88,200) $201,800 ($148,470) $341,530 ($60,000) Restaurant 2 Restaurant 3 $281,530 Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Financial Accounting

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

11th edition

978-0133251111, 013325111X, 0133251039, 978-0133251036

More Books

Students also viewed these Accounting questions

Question

a critical assessment of electronic transactions act of jamaica

Answered: 1 week ago