6. Your best friend has contacted you about her new bar-b-que restaurant. She has pieced together the following information concerning the revenues and costs as well as her sales volume for her first month of business. $20,475 $ 7,013 $ 5,641 $ 4,400 $ 2,490 Sales Food & Packaging costs Payroll Occupancy (rent, depreciation, etc.) General, selling, & admin expenses She charges $9 per plate. Her fixed costs consist of occupency costs and 60% of the general, selling, & admin expenses. All other expenses are considered variable costs. Compute the following: a. How many plates did your friend serve during this period? How many plates does she have in her margin of safety? If she decides to open 7 days a week instead of 6, she predicts she will increase her sales by 3%. What will her expected b. с. operating income be with the increase in sales? d. If she wants operating income of $2,000 a month, how many plates will she need to serve?
6. Your best friend has contacted you about her new bar-b-que restaurant. She has pieced together the following information concerning the revenues and costs as well as her sales volume for her first month of business. $20,475 $ 7,013 $ 5,641 $ 4,400 $ 2,490 Sales Food & Packaging costs Payroll Occupancy (rent, depreciation, etc.) General, selling, & admin expenses She charges $9 per plate. Her fixed costs consist of occupency costs and 60% of the general, selling, & admin expenses. All other expenses are considered variable costs. Compute the following: a. How many plates did your friend serve during this period? How many plates does she have in her margin of safety? If she decides to open 7 days a week instead of 6, she predicts she will increase her sales by 3%. What will her expected b. с. operating income be with the increase in sales? d. If she wants operating income of $2,000 a month, how many plates will she need to serve?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![6. Your best friend has contacted you about her new bar-b-que restaurant. She has pieced together the following
information concerning the revenues and costs as well as her sales volume for her first month of business.
$20,475
$ 7,013
$ 5,641
$ 4,400
$ 2,490
Sales
Food & Packaging costs
Payroll
Occupancy (rent, depreciation, etc.)
General, selling, & admin expenses
She charges $9 per plate.
Her fixed costs consist of occupency costs and 60% of the general, selling, & admin expenses. All other expenses are
considered variable costs.
Compute the following:
How many plates did your friend serve during this period?
How many plates does she have in her margin of safety?
If she decides to open 7 days a week instead of 6, she predicts she will increase her sales by 3%. What will her expected
operating income be with the increase in sales?
If she wants operating income of $2,000 a month, how many plates will she need to serve?
а.
b.
с.
d.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F33ec63b3-d389-4ccd-948b-e56250e63ff8%2Fa519f503-a6f7-4641-b515-9f19fbe7daa9%2Ff5vmf5l_processed.png&w=3840&q=75)
Transcribed Image Text:6. Your best friend has contacted you about her new bar-b-que restaurant. She has pieced together the following
information concerning the revenues and costs as well as her sales volume for her first month of business.
$20,475
$ 7,013
$ 5,641
$ 4,400
$ 2,490
Sales
Food & Packaging costs
Payroll
Occupancy (rent, depreciation, etc.)
General, selling, & admin expenses
She charges $9 per plate.
Her fixed costs consist of occupency costs and 60% of the general, selling, & admin expenses. All other expenses are
considered variable costs.
Compute the following:
How many plates did your friend serve during this period?
How many plates does she have in her margin of safety?
If she decides to open 7 days a week instead of 6, she predicts she will increase her sales by 3%. What will her expected
operating income be with the increase in sales?
If she wants operating income of $2,000 a month, how many plates will she need to serve?
а.
b.
с.
d.
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