A restaurant specializes in a seafood buffet dinner only, at a price of $15.75 per person with a variable cost of $6.30 per person. The fixed cost is $6000 per month. On a monthly basis, how many buffet meals must be served to break even if they are open 20 days per month? 900 meals 635 meals O 735 meals 850 meals

A restaurant specializes in a seafood buffet dinner only, at a price of $15.75 per person with a variable cost of $6.30 per person. The fixed cost is $6000 per month. On a monthly basis, how many buffet meals must be served to break even if they are open 20 days per month? 900 meals 635 meals O 735 meals 850 meals

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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A restaurant has three main products: drinks, meals and desserts. Fixed costs are $397,000. Other financial information is as follows: Item drinks: meals desserts Average Purchase (in S) 10 25 10 Average Margin Total Sales Dollars (in %) 40 50 10 60% 20% 70% What are total sales (in dollars) needed to make a profit of $200,000, assuming that the sales mix remains constant? How many drinks would they need to sell in order to make a profit of $200,000, assuming that the sales mix remains constant.
Mission Foods produces two flavors of tacos-chicken and fish - with the following characteristics. Chicken Fish Selling price per taco $ 3.30 $ 5.40 Variable cost per taco 1.65 2.70 Expected sales tacos 207,000 291,000 The total fixed costs for the company are $114,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix would be 36 percent chicken and 64 percent fish at the break-even point, compute the break-even volume using the weighted-average contribution margin. c. If the product sales mix were to change to four chicken tacos for each fish taco, what would be the new break-even volume? Complete this question by entering your answers in the tabs below. Required A a. What is the anticipated level of profits for the expected sales volumes? b.…
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Mission Foods produces two flavors of tacos—chicken and fish—with the following characteristics. Chicken Fish Selling price per taco $ 3.60 $ 4.70 Variable cost per taco 1.80 2.35 Expected sales (tacos) 200,000 300,000 The total fixed costs for the company are $115,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix would be 38 percent chicken and 62 percent fish at the break-even point, compute the break-even volume using weighted-average contribution margin. c. If the product sales mix were to change to four chicken tacos for each fish taco, what would be the new break-even volume?
A travel agency has a holiday package that sells for OMR 125. Fixed costs are OMR 80000; and at the present volume of 1000 customers, variable costs are OMR 25000 and profits are OMR 20000. (a) What is the break-even point volume? (b) Assuming that fixed costs remain constant, how many additional customers will be required for the agency to increase profit by OMR 1000? (Ans. (a) 800 units (b) 10 customers)
Cheesecake Etc. is considering on expanding their menu selection by adding the following products shown in the table below. Their annual fixed costs is Php 50,000. The shop is open for 25 days per month. Monthly demand from a similar store is used as shown in the table. Price per Variable Estimated Item Cost Demand Chicken Salad Clubhouse Sandwich Carbonara Muffin Hot Chocolate serving * 185.00 - 155.00 - 175.00 6.50 250 7.40 220 9.75 180 65.00 3.25 120 55.00 2.45 240 Compute for the following: a. What is the monthly break-even point? Php Blank 1 Remarks (0): Round off up to 2 decimal places b. Units to be sold monthly to break-even? Chicken Salad = Blank 2 Clubhouse Sandwich = Blank 3 Carbonara = Blank 4 Muffin = Blank 5 Hot Chocolate = Blank 6 Remarks (b): Express final answer as a whole number Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer Blank 4 Add your answer Blank 5 Add your answer Blank 6 Add your answer
Mission foods produces two flavors of tacos, chicken and fish, with the following characteristics. The total fixed costs for the company are $117,000. A. What is the anticipated level of profits for the expected sales volumes? B. Assuming that the product mix would be 40 percent chicken and 60 percent fish at the break-even point, compute the break even volume. C. If the product sales mix were to change to four chicken tacos for each fish taco, what would be the new break-even volume?
You operate a fast-casual burrito restaurant, like a Chipotle or Una Mas. Your fixed costs are $550 per day. Your variable costs are $6.50 per customer served. The prices you charge produce revenue of $13.00 per customer served, and at those prices your customers "demand" (buy) 450 "meals" (entrée plus beverage or entrée plus side plus beverage) per day. What will your daily profit be?
Your organization sells tables for $200 each. The fixed cost is $25,000 per annum with current demand at 700 tables per annum. Each table has a direct material cost of $65 and direct labour cost of $83. Required: A. I) what is profit based on the current demand? i) How many tables should be sold to get a profit of $5,000? A. The organization is considering two alternative proposals. i. Reducing selling price by 15% which is expected to increase demand by 10% ii. Increase selling price by 5% which is expected to reduce demand by 10% What will be the profits or loss under each alternative proposal?
Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
In a slow year, Deutsche Burgers will produce 3.2 million hamburgers at a total cost of $4.6 million. In a good year, it can produce 6.2 million hamburgers at a total cost of $6.4 million. a. What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) b. What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is the average cost per burger when the firm produces 3 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What is the average cost per burger when the firm produces 4 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. Why is the average cost lower when more burgers are produced? a. Fixed cost million b. Variable cost per burger c. Average cost d. Average cost per burger per burger e. Why is the average cost lower…
In a slow year, Deutsche Burgers will produce 3.2 million hamburgers at a total cost of $4.6 million. In a good year, it can produce 6.2 million hamburgers at a total cost of $6.4 million. a. What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) b. What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is the average cost per burger when the firm produces 3 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What is the average cost per burger when the firm produces 4 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. Why is the average cost lower when more burgers are produced? a. Fixed cost million b. Variable cost per burger per burger c. Average cost d. Average cost per burger e. Why is the average cost lower…