The manager of a local restaurant spends $8,400 for its monthly fixed cost. Its variable cost...
The manager of a local restaurant spends $8,400 for its monthly fixed cost. Its variable cost is $8 per customer.
If 1,200 customers are served in the next month, what will be the amount of Total Cost?
Determine the amount of its Contribution Margin to generate the EBT of $6,600.
Homework Answers
| Total Cost = Variabe Cost + Fixed Cost | |||||||
| = (1200 customer*$8 per customer) + $8400 | |||||||
| =9600+8400 | |||||||
| =$18000 | |||||||
| Contribution Margin For EBT $6600 | |||||||
| = Fixed Cost + EBT | |||||||
| =$8400+6600 | |||||||
| =$15000 | |||||||
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