Question

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 prepare a CVP graph of your results for requirements #1 and #2 using Exhibit 21-8 and the steps on page 1142 for assistance. 2. 3. You may choose to work individually or with a partner (please reach out to one another to get to know each other and get used to working with other people outside your regular groups). Select one person to submit the assignment on behalf of the pair and be sure to clearly indicate the names of the person. Each member will receive the same grade. No more than 2 people per group 4. Please prepare your assignment submission using one of the following acceptable formats: Word, Excel, Pages or Google Docs etc. Please download and/or save these files in pdf format to ensure I am able to open them using the Blackboard grading tool. Under part 2 in the Assignment Submission area beside Attach File, select Browse My Computer and then select your pdf file. If you need assistance with this, the RDC Library would be happy to assist you!

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

Answer 1

	A	Average Revenue per meal	$45
	B	Average Cost of food per meal	$15
		FIXED COSTS per month
	C	Chef and diswasher salaries	$5,100
	D	Rent	$4,000
	E	Cleaning	$800
	F	Replacement of dishes etc.	$300
	G	Utilities advertising,telephone	$2,300
	H=C+D+E+F+G	Total monthly fixed expenses	$12,500
	I	Total annual fixed expenses	$150,000	(12500*12)
		N=Number of Meals
	TR	Total Revenue=N*45
	TV	TotalVariable Cost=N*15
	TC	TotalCost=150000+N*15
	P=TR-TC	Profit=N*45-(150000+N*15)
	J	Contribution per meal =45-15	$30
		Break even point=Fixed Cost/Contribution=I/J	5,000
	1	Annual Breakeven number of meals	5,000
		Annual Breakeven Sales Revenue	$        225,000	(5000*45)
	2	Required operating Income=	$          75,600
		Number of meals=5000+(75600/30)	7,520
		Sales Revenue=7550*45	338,400
	3	Number of meals to be served each night	30	(7520/(50*5)
		N	TR=N*45	TC=150000+N*15	P=TR-TC
		Number of Meals per annum	TotalRevenue	Total Cost	Profit
		0	$0	$150,000	($150,000)
		1000	$45,000	$165,000	($120,000)
		2000	$90,000	$180,000	($90,000)
		3000	$135,000	$195,000	($60,000)
		4000	$180,000	$210,000	($30,000)
		5000	$225,000	$225,000	$0
		6000	$270,000	$240,000	$30,000
		7000	$315,000	$255,000	$60,000
		7520	$338,400	$262,800	$75,600
		8000	$360,000	$270,000	$90,000
		9000	$405,000	$285,000	$120,000
		10000	$450,000	$300,000	$150,000
		USE Microsoft excel (Insert, Scatter) to creat the diagram attached