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need help please
Marias Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following
Fixed costs included in this income statement are $5,425 for meal production and $700 for administrative costs. Maria has rec
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Answer #1
Marina's food services
Status Quo Alternative
3500 units 3800 units Difference
Amount $ Amount $ Amount $
Sales Revenue 22750 23875 1125 Higher
Less: Variable cost
Meals 11200 12160 960 Higher
Administrative 1750 1750 0 None
Contibution Margin 9800 9965 165 Higher
Less: Fixed cost 6125 6125 0 None
Operating Profit 3675 3840 165 Higher
Working
UNITS                                 (22750/6.5) 3500+300
                                             3500 units 3800 units
Sales 22750 22750+ (300*3.75)= 23875
Variable Cost
Meal                                  (16625-5425) (11200/3500)*3800
                                             11200 12160
Administrative (2450-700)=1750 1750
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