Question

onthly sales. Help ut costs at varying levelse 2. Tutti Sandwich Shop has the following information regarding costs at various levels of month separate her costs into fixed costs and variable costs so that she can predict and evaluate her coste guests served. February ($) 16,000 16,800 15,600 16,350 March (5) 20,000 21,000 16,000 18,750 2.400 January (5) 10.000 10,500 15,000 12,750 2,400 600 1,000 500 2,600 Monthly Sales in Guests Served Cost of Sales (Food Cost) Salaries, Wages, and Benefits Telephone Rent on Building Depreciation of Equipment Utilities Maintenance and Repairs Administrative Costs 2,100 600 600 1,300 1,500 740 900 2,600 2,600 Variable Cost per Guest Fixed Costs 0 14,000 6,750 Hem Cost of Sales (Food Cost) Salaries, Wages, and Benefits Telephone Rent on Building Depreciation on Equipment Utilities Maintenance and Repairs Administrative Costs Total 500

Answer 1

Tutti Sandwich Shop Months Monthly sales in Guest served Item January February Marchc 10000 Guest served 16000 Guest served 20000 Guest served Variable cost per Unit Total Cost Fixed Cost Variable cost per Unit Total Cost Fixed Cost Variable cost per Unit Total Cost Fixed Cost F=(D-E)/16000 C=(A-B)/10000 I=(G-H)/20000 A В G н $1 $ $ $ Cost of Sales(Food Cost) Salaries, Wages & Benefits Telephone Rent on Building Depreciation on Equipments 10500 0 1.05 16800 0 1.05 21000 0 1.05 14000 15600 14000 15000 14000 0.1 16000 0.1 0.1 12750 6750 0.6 16350 6750 0.6 18750 6750 0.6 2400 2400 0 0.24 0 0.15 2400 0.12 600 0 0.06 600 0.038 600 0 0.03 500 1500 Utilities 1000 500 0.05 1300 0.05 500 0.05 0.045 Maintenance and Repairs Administative Costs Total 740 500 0.05 0 0.046 900 0 2600 0 0.26 2600 0 0.163 2600 0 0.13 45350 21250 2.41 56390 21250 2.196 63750 21250 2.125 a Develop a total cost equation for Tutti that she can use at any volume of sales Fixed Cost + Variable cost per Unit Number of Guests Total Cost January (S) February ($) March (S) XXX 21250 2.41 21250 2.196 XXX ХXX 21250 2.125 b Tutti and she sold 30000 guests in April, calculate total cosgt Total Cost A Number of Guests Fixed Cost+ Variable cost per Unit Total Cost in April E-B+(C*D) В C January (S) February ($) March ($) 21250 2.41 30000 93550 21250 2.196 30000 87130 21250 2.125 30000 85000 c Her actual cost in April were $81500 Were actual cost is higher or lower than expected? April 30000 guests Actual Cost Expected January (S) February ($) March (S) Higher Higher 93550 87130 Higher 85000 Were actual cost is Favorable or Unfavorable? April 30000 guests Actual Cost January ($) February ($) March ($) 93550 Favorable Favorable 87130 85000 Favorable