Amount in USD | |||
1 | Sales | 45 | USD/per meal |
Cost of food (COGS) | 15 | USD/per meal | |
Gross profit | 30 | USD/per meal | |
Gross profit | 150000 | USD | |
Gross profit | 5000 | no of meal | |
Fixed Cost | Annual amount | ||
Salaries | 61200 | ||
Rent | 48000 | ||
Cleaning | 9600 | ||
Replacement of dishes | 3600 | ||
Utilities, advertising and telephone | 27600 | ||
150000 | |||
Sales | 225000 | ||
COGS | 75000 | ||
Gross profit | 150000 | ||
Fixed Cost | 150000 | ||
Break even | - | ||
2 | Sales | 45 | USD/per meal |
Cost of food (COGS) | 15 | USD/per meal | |
Gross profit | 30 | USD/per meal | |
Gross profit | 225600 | USD | |
Gross profit | 7520 | no of meal | |
Fixed Cost | Annual amount | ||
Salaries | 61200 | ||
Rent | 48000 | ||
Cleaning | 9600 | ||
Replacement of dishes | 3600 | ||
Utilities, advertising and telephone | 27600 | ||
150000 | |||
Sales | 338400 | ||
COGS | 112800 | ||
Gross profit | 225,600 | ||
Fixed Cost | 150,000 | ||
Break even | 75,600 | ||
3 | No of meals to earn profit of 75600 | 7520 | |
Restrurant open | 50 | Weeks | |
No of days in a year ( Tuesday to Saturday) | 250 | ||
Meal each night | 30 | ||
4 | Following Factors to be considered are | ||
a) Capital investment, NPV, Payback period, IRR | |||
b) Sustainability | |||
c) Permit issues | |||
d) Demand | |||
e) Fixed Cost | |||
f) Competition | |||
I have added the pictures for decision case 21-1 as per requested in the instructions from...
I have posted the decision case 21-1 as instructed in the first picture.... Please show the calculations for my better understanding and the second part of the question also requires a CVP graph I also need help of how it is suppose to be drawn Instructions: 1. Complete the requirements for Decision Case 21-1 on page 1197 of your textbook. Show all calculations and include references for your supporting documentation In addition to the requirements in the textbook (#1-4), please...
can i get help please step by step provided please. Decision Case 20-1 Steve and Linda Hom live in Bartlesville, Oklahoma. Two years ago, they visited Thailand. Linda, a professional chef, was impressed with the cooking methods and the spices used in Thai food. Bartlesville does not have a Thai restaurant, and the Homs are contemplating opening one. Linda would supervise the cooking, and Steve would leave his current job to be the maitre d'. The restaurant would serve dinner...
Cost-volume-profit (CVP) analysis is a powerful tool for planning and decision making. Thus, CVP analysis emphasized the interrelationships of costs, quantity sold, and price. This analysis is defined as assessment of total revenues, total costs and operating income in response to changes in the volume of sales, the selling price, variable cost or fixed costs of production. The CVP analysis can be a valuable tool in identifying the extent and magnitude of the economic trouble a company is facing and...
Big Time Investor Group is opening an office in Portland, Oregon, Fixed monthly costs are office rent ($8,000), depreciation on office furniture ($1,800), utilities ($2,000), special telephone lines ($1.000), a connection with an online brokerage service ($2,600), and the salary of a financial planner ($19,600). Variable costs include payments to the financial planner (9% of revenue), advertising (11% of revenue), supplies and postage (4% of revenue), and usage fees for the telephone lines and computerized brokerage service (6% of revenue)....
Prepare a Graph and Derive Information from the Graph BASELINE CASE The following numbers are estimates for the upcoming year for a manufacturing company. Since the company is effective at implementing a JIT inventory system, assume there is no beginning or ending inventory. No. of units sold 120,000 Selling price per unit $240.00 Fixed Expenses Variable Expenses (per unit sold Production costs: Direct materials $18.00 Direct labor 36.00 Factory overhead $2,160,000 24.00 Marketing expenses: Sales salaries and commissions 540,000...
Big TimeBig Time Investor Group is opening an office in Portland, Oregon. Fixed monthly costs are office rent ($$8,900), depreciation on office furniture left parenthesis $($1,700), utilities ($2,500), special telephone lines ($1,600), a connection with an online brokerage service ($2,600), and the salary of a financial planner ($17,700). Variable costs include payments to the financial planner (88% of revenue), advertising left parenthesis (13% of revenue), supplies and postage (33% of revenue), and usage fees for the telephone lines and computerized...
I got the first 4 steps done. Just need to know what formulas from the data to use for steps 5,6, and 7. Step #1 ASSUMPTIONS Launch-it S10.00 Product #1: Sales price per unit Variable costs per unit: 1.00 2.00 1.00 4.00 Purchase Price Shipping and HandlingS Sales Comission Total variable cost per unit 200 Monthly volume Treat-Time $30.00 Product #2: Sales price per unit Variable costs per unit: 7.00 8.00 3.00 18.00 Purchase Price Shipping and Handling Sales Comission...
Total Revenue Profit Total Cost CVP Analysis Variable Cout Fed Cost Units Sold In Class Example Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and administrative costs are $240,000 per year. (1) Calculate the breakeven point in units and sales dollars. (2) Prepare a contribution margin income statement to...
25) Variable costs vary in total and vary per unit (within the relevant range). True False 26) On a CVP graph for a profitable company, the total revenue (sales) line will be steeper than the line representing total costs (variable costs and fixed costs). True False 28. Depreciation expense on an office copier used by the CEO in the administrative building is a product cost and a noncash expense. True False 29. One disadvantage of top down budgeting is budgetary...
SO Step 2. Plot the total expense on the graph Part 1 of 3 0 5 10 15 20 25 30 35 40 45 535 Value in Car Cart Sold 30 1:51 / 1.51 1x CC 1 Knowledge Check 01 What is represented on the X axis of a cost-volume-profit (CVP) graph? points Skipped eBook O Sales revenue O Fixed cost O Unit volume O Variable cost Print References Knowledge Check 02 What is usually plotted as a horizontal line...