CST-33945 restaurant produces and sells hamburgers. Each burger sells for $ 9. During December, the restaurant sold 10,000 burgers (the average amount sold each month). The restaurant employs cooks, servers, and one supervisor (the owner, Carol Johnson). All cooks and servers are part-time employees. The restaurant maintains a pool of part-time employees so that the number of employees scheduled can be adjusted to the changes in demand. A janitor is hired to clean the building on a weekly basis. The building is leased from a local real estate company. The building has no seating capabilities. All orders are filled on a drive-through basis. The supervisor spends 50% of her time supervising food production, and the balance of her time supervising counter staff and on various other sales and administrative activities. The following costs were incurred during December: Hamburger Meat Lettuce $3,000 $1,800 Tomatoes Buns Cook's wages Server's wages Supervisor's salary Utilities Depreciation cooking equipment Depreciation cash register Advertising Rent Janitorial expenses $1,000 $1,100 $12,000 $10,000 $15,000 $ 2,300 $700 $ 400 $600 $1,000 $400 Utility costs consist of a $ 1,100 fixed cost with the balance depending upon usage. How much is the extra profit, if the restaurant sells one more hamburger? (Please carry out your calculations up to two decimal places)
CST-33945 restaurant produces and sells hamburgers. Each burger sells for $ 9. During December, the restaurant sold 10,000 burgers (the average amount sold each month). The restaurant employs cooks, servers, and one supervisor (the owner, Carol Johnson). All cooks and servers are part-time employees. The restaurant maintains a pool of part-time employees so that the number of employees scheduled can be adjusted to the changes in demand. A janitor is hired to clean the building on a weekly basis. The building is leased from a local real estate company. The building has no seating capabilities. All orders are filled on a drive-through basis. The supervisor spends 50% of her time supervising food production, and the balance of her time supervising counter staff and on various other sales and administrative activities. The following costs were incurred during December: Hamburger Meat Lettuce $3,000 $1,800 Tomatoes Buns Cook's wages Server's wages Supervisor's salary Utilities Depreciation cooking equipment Depreciation cash register Advertising Rent Janitorial expenses $1,000 $1,100 $12,000 $10,000 $15,000 $ 2,300 $700 $ 400 $600 $1,000 $400 Utility costs consist of a $ 1,100 fixed cost with the balance depending upon usage. How much is the extra profit, if the restaurant sells one more hamburger? (Please carry out your calculations up to two decimal places)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
i need the answer quickly
Transcribed Image Text:CST-33945 restaurant produces and sells hamburgers. Each burger sells for $9. During December, the restaurant sold 10,000 burgers (the average amount sold each month). The restaurant employs
cooks, servers, and one supervisor (the owner, Carol Johnson). All cooks and servers are part-time employees. The restaurant maintains a pool of part-time employees so that the number of
employees scheduled can be adjusted to the changes in demand.
A janitor is hired to clean the building on a weekly basis. The building is leased from a local real estate company. The building has no seating capabilities. All orders are filled on a drive-through basis.
The supervisor spends 50% of her time supervising food production, and the balance of her time supervising counter staff and on various other sales and administrative activities. The following costs
were incurred during December:
Hamburger Meat
Lettuce
Tomatoes
Buns
Cook's wages
Server's wages
Supervisor's salary
Utilities
Depreciation cooking equipment
Depreciation cash register
Advertising
Rent
Janitorial expenses
$3,000
$ 1,800
$1,000
$1,100
$ 12,000
$10,000
$15,000
$2,300
$ 700
$400
$ 600
$1,000
$400
Utility costs consist of a $ 1,100 fixed cost with the balance depending upon usage. How much is the extra profit, if the restaurant sells one more hamburger? (Please carry out your calculations up to
two decimal places)
Multiple Choice
$ 5.99
$4.44
$5.24
$ 6.89
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education