Question

2 Search AutoSave OD File Home 8 Draw IMA Case Study - Snowies Shaved ice Excel Template Page Layout Formulas Data Review View Insert Help 140 . 1 X S. Total fixed cost per month 1 Part 1 3 Data 4 Selling price per large Snowie 4.00 0.20 0.02 0.08 0.01 6 Ice per Snowie 7 Spoon straw (need one per Snowie) 8 Styrofoam cup (need one per Snowie) 9 Napkin (need two per Snowie) 10 Servings per gallon of syrup 11 Cost per gallon of syrup (includes concentrate, preservative, and sugar) 12 Hourly rate for workers 13 Event registration fee per day 14 Electricity insurance, maintenance, and permit costs per month 15 Kiosk rental cost per month 16 Purchase cost of two ice shavers (5-year life) 17 Purchase cost of a flavor station (5-year fe) 35 36 4. Total variable cost per Snowie 4.25 10.00 25.00 250.00 650.00 3,180.00 1,080.00 38 Total variable cost per Snowie $0.0000 40 5. Total fixed cost per month Part 1 Part 2 Circular References Part 3 O Realy Type here to search

Answer 1

Total fixed cost per month should be: $971

Notes

Fixed costs are those costs which not change with the level of production.

Fixed cost per month = Electricity, utilities costs + Kiosk rental cost + Depreciation on shavers + Depreciation on flavor station

= 250+650+(3180/5*12) + (1080/5*12)

= 250+650+53+18= 971