Question

1. A vendor prepares 100.00 hotdogs every day and sells at $19.00 /piece. For each hot...

1. A vendor prepares 100.00 hotdogs every day and sells at $19.00 /piece. For each hot dog, he spends $12.00 in the raw material. Additionally he spends $1.97 for packing each hotdog and monthly $46.00, $20.00, $9.00 as food truck rent, electricity and other expenses respectively. On a particular day in June 114.00 people came wanting the hotdog. Vendor thinks $3.00 per lost sale. Determine vendor’s profit for that day? Assume there are 30 days in the month.

2.For a table manufacturing company, selling price for a table is $65.00 per Unit, Variable cost is $15.00 per Unit, labor charge is $10.44 per Unit, rent is $573.00 per month and transportation is $10 per 10 tables. If 50 tables are sold in a month how much is the fixed cost for that month?

please, show processes to solve them

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer No 1

Particular Amount($)
SP /Piece 19
Raw Material 12
Packing 1.97
Contribution/Piece 5.03
Units prepared /day 100
Total Contribution 503
Loss on Lost sale(14 pieces*3) 42
Total Income/Day 461

Notes-

1-FIxed cost being sunk cost has not been considered while making a decision.

2- Loss on lost sale has been considered while calculating income because Its loss due to less production of hot dogs.

Answer -2

Particular Amount($)
SP /Piece 65
VC/Unit 15
Labour Charges/unit 10.44
Contribution/Piece 39.56
Units Sold During the month 50
Total Contribution 1978

Rent/month=$573

Transportation cost is $10 for 10 tables so 50 tables are sold so transportation cost for the month=10*5=$50

Total fixed cost=rent+transportation cost=573+50=$623.

Add a comment
Know the answer?
Add Answer to:
1. A vendor prepares 100.00 hotdogs every day and sells at $19.00 /piece. For each hot...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • A vendor prepares 100.00 hotdogs every day and sells at $18.00 /piece. For each hot dog,...

    A vendor prepares 100.00 hotdogs every day and sells at $18.00 /piece. For each hot dog, he spends $12.00 in the raw material. Additionally he spends $1.81 for packing each hotdog and monthly $46.00, $21.00, $12.00 as food truck rent, electricity and other expenses respectively. Lost sales are charged at $6.00 per lost sale. Leftover hotdogs can be sold for $3. On a particular day in June 111.00 people came wanting to buy a hotdog. Determine the vendor’s profit for...

  • 2.A vendor sells hotdogs at $15.00 /piece. For every hot dog he spends $12.28 in the...

    2.A vendor sells hotdogs at $15.00 /piece. For every hot dog he spends $12.28 in the raw material. Additionally he spends $1.17 for packing each hotdog and monthly $47.00, $21.00, $13.00 as food truck rent, electricity and other expenses respectively. How much is the vendor contributing to covering his fixed costs or generating profits? 3. A vendor prepares 100.00 hotdogs every day and sells at $19.00 /piece. For each hot dog, he spends $12.00 in the raw material. Additionally he...

  • 1.)A vendor prepares 100.00 hotdogs every day and sells at $18.00 /piece. For each hot dog,...

    1.)A vendor prepares 100.00 hotdogs every day and sells at $18.00 /piece. For each hot dog, he spends $12.00 in the raw material. Additionally he spends $1.81 for packing each hotdog and monthly $46.00, $21.00, $12.00 as food truck rent, electricity and other expenses respectively. Lost sales are charged at $6.00 per lost sale. Leftover hotdogs can be sold for $3. On a particular day in June 111.00 people came wanting to buy a hotdog. Determine the vendor’s profit for...

  • A vendor prepares 100.00 hotdogs every day and sells at $20.00/piece. For each hot dog, he...

    A vendor prepares 100.00 hotdogs every day and sells at $20.00/piece. For each hot dog, he spends $12.00 in the raw material. Additionally he spends $1.00 for packing each hotdog and monthly $50.00, $20.00, $10.00 as food truck rent, electricity and other expenses respectively. Lost sale are taken as $1 per unhappy customer. Leftover hotdogs can be sold for $5.00/piece. On a particular day in June it rained heavily so the vendor was able to sell only 80.00 hot dogs....

  • A vendor prepares 100.00 hotdogs every day and sells at $18.00 /piece. For each hot dog,...

    A vendor prepares 100.00 hotdogs every day and sells at $18.00 /piece. For each hot dog, he spends $13.00 in the raw material. Additionally he spends $1.51 for packing each hotdog and monthly $58.00, $25.00, $10.00 as food truck rent, electricity and other expenses respectively. Lost sales are charged at $5.00 per lost sale. Leftover hotdogs can be sold for $3. On a particular day in June 108.00 people came wanting to buy a hotdog. Determine the vendor's profit for...

  • 1.For a table manufacturing company, selling price for a table is $151.00 per Unit, Variable cost...

    1.For a table manufacturing company, selling price for a table is $151.00 per Unit, Variable cost is $30.00 per Unit, rent is $3,425.00 per month and insurance is $219.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $324.00 per Unit, Variable cost to $58.00 per Unit, bigger area will have rent $6,364.00 per month and insurance is $360.00 per month At what point will...

  • A vendor sells hotdogs at $15.00 /piece. For every hot dog, he spends $11.89 in the...

    A vendor sells hotdogs at $15.00 /piece. For every hot dog, he spends $11.89 in the raw material. Additionally, he spends $1.02 for packing each hotdog and monthly $46.00, $23.00, $13.00 as food truck rent, electricity and other expenses respectively. How much is the vendor contributing to covering his fixed costs or generating profits?

  • For a table manufacturing company, selling price for a table is $177.00 per Unit, Variable cost...

    For a table manufacturing company, selling price for a table is $177.00 per Unit, Variable cost is $29.00 per Unit, rent is $3,391.00 per month and insurance is $288.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $318.00 per Unit, Variable cost to $57.00 per Unit, bigger area will have rent $5,972.00 per month and insurance is $400.00 per month At what point will...

  • spends $11.00 in the raw material. Additionally he spends $1.65 for packing each hotdog and monthly...

    spends $11.00 in the raw material. Additionally he spends $1.65 for packing each hotdog and monthly $40.00, $18.00, $10.00 as food truck rent, electricity and other expenses respectively. On a particular day in June 114.00 people came wanting the hotdog. Vendor thinks $5.00 per

  • For a table manufacturing company, selling price for a table is $156.00 per Unit, Variable cost...

    For a table manufacturing company, selling price for a table is $156.00 per Unit, Variable cost is $25.00 per Unit, rent is $3,179.00 per month and insurance is $292.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $297.00 per Unit, Variable cost to $42.00 per Unit, bigger area will have rent $5,816.00 per month and insurance is $336.00 per month At what point will...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT