Good Times Restaurant estimates the following costs for next year: fixed costs $120,000, variable cost per meal $15. If they want to earn a profit of $90,000 and charge $35 per meal, calculate the required number of meals.

Good Times Restaurant estimates the following costs for next year: fixed costs $120,000, variable cost per meal $15. If they want to earn a profit of $90,000 and charge $35 per meal, calculate the required number of meals.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

See similar textbooks

Related questions

Q: None

A: Step 1: Total Manufacturing Costs (TMC).= direct materials used + direct labor incurred + overhead…

Q: Accurate Answer

A: To calculate goodwill in an acquisition, use the formula: Goodwill = Purchase Price - (Fair Value of…

Q: Expert need your advice

A: Explanation of Adjusted Basis: Adjusted basis is the original cost of an asset modified by certain…

Q: Financial Accounting

A: Step 1: Define Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) Ratio is a financial metric…

Q: Pluto Company sold 4,480 units in October at a price of $63 per unit. The variable cost is $51 per…

A: Explanation of Contribution Margin: Contribution margin is the difference between total sales…

Q: A company has a significant amount of deferred tax assets on its balance sheet. Discuss the…

A: Deferred tax assets (DTAs) arise when a company has paid more taxes or recognized fewer tax expenses…

Q: Given correct answer accounting

A: The arithmetic average annual return per year is simply the mean or average of the returns. To…

Q: Financial Accounting

A: Step 1: Define Degree of Operating Leverage (DOL)The degree of operating leverage (DOL) measures the…

Q: Discuss the accounting treatment for joint ventures. How do companies account for their investments…

A: Accounting Treatment for Joint VenturesInvestments in joint ventures are typically accounted for…

Q: GENERAL ACCOUNTING

A: Explanation of Total Manufacturing Cost:Total manufacturing cost refers to the total cost incurred…

Q: Solve all of the following problems: The Smith company has $2,392,500 in current assets and…

A: Problem 1: Current Ratio for Smith CompanyThe current ratio is defined as:Current Ratio =Current…

Q: Dove, Inc. produces a product that has a variable cost of $6.00 per unit. The company's fixed costs…

A: Explanation of Contribution Margin per Unit:The contribution margin per unit is the amount…

Q: Hello, can u give correct answer

A: Definitions Related to the QuestionFinancial Statements:Financial statements are formal records of a…

Q: Compute for the month of June

A: Explanation of Direct Materials Used:Direct Materials Used refers to the cost of raw materials…

Q: Hi expert please give me answer general accounting question

A: Step 1: Definition of Cash ReceiptsCash receipts are the total amount of money received by a company…

Q: Subject: Financial Accounting

A: Concept of Times Interest Earned RatioThe Times Interest Earned Ratio measures a company's ability…

Q: How much cash was paid to employees during the year on these general accounting question?

A: Step 1: Definition of Cash Paid to EmployeesCash paid to employees represents the actual cash…

Q: General accounting questions

A: Step 1: Definition of High-Low MethodThe High-Low Method is a managerial accounting technique used…

Q: General Account

A: a. Standard Direct Labor Rate per HourThe standard direct labor rate per hour includes:Hourly wage…

Q: Ans

A: Return (%)=( Starting Value/Change in Value )×100We are given:Closing value: 14,253.77Change in…

Q: Financial Accounting

A: Step 1: Define Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL) measures the…

Q: I don't need ai answer general accounting question

A: Step 1: Definition of ShrinkageShrinkage refers to the loss of inventory that cannot be accounted…

Q: Katherine Brewer is the stockholder and operator of Our Idol LLC, a motivational consulting…

A: To solve the problem, we will use the accounting equation: Assets=Liabilities+Stockholders' Equity…

Q: General accounting problem

A: Explanation: The formula to calculate cash flow cycle is as follows:Cash flow cycle = Average age of…

Q: ??!!!

A: Explanation of Adjusted Cost of Goods Sold (COGS):Adjusted Cost of Goods Sold (COGS) represents the…

Q: The sales price for a product provides a gross profit of 20% of sales price. What is the gross…

A: To determine the gross profit as a percentage of cost, we use the relationship between gross profit…

Q: Which of the following amount would be debited to the land account?

A: Step 1: Definition of Fixed AssetsFixed Assets are tangible assets purchased for long-term use in…

Q: Financial Accounting Question

A: Step 1: Define Profitability Index (PI)The Profitability Index (PI) is a financial metric used to…

Q: Correct answer

A: To calculate the firm's Return on Assets (ROA), we need to follow these steps:Calculate the net…

Q: I want answer please

A: The learning curve is one of the key concepts in production and operations management, which states…

Q: ??!!

A: Explanation of Predetermined Overhead Rate: Predetermined overhead rate is a calculated rate used to…

Q: Answer?

A: 2. Steps the Company Can Take to Reduce TurnoverTo address high turnover, companies can adopt…

Q: Provide Correct Answer of this Financial Accounting Question Don't use ai

A: Problem 1.1Given:Beginning Direct Material Inventory = 180,000Ending Direct Material Inventory =…

Q: One of Anfa Company's activity cost pools is inspecting, with an estimated overhead (OH) of…

A: Step 1:Calculate the total inspections as follows:Total inspections = throw rugs + area rugs…

Q: Hii, Tutor Give answer

A: Concept of Finished Goods Inventory: Finished goods inventory refers to the value of completed…

Q: The ending inventory for the year would be valued at.

A: Explanation of Absorption Costing:Absorption costing is a costing method that allocates all…

Q: The Activity-Based costs assigned to cost objects are based on what? Activity cost pools.…

A: Activity-Based Costing (ABC) is a costing method that identifies activities in an organization and…

Q: Goods available for sale are $118,000; beginning inventory is $37,000; ending inventory is $42,000;…

A: Explanation of Cost of Goods Sold (COGS): This represents the direct costs associated with producing…

Q: Please help me

A: Definitions Related to the Question:Concept of Inventory:Inventory refers to goods and materials…

Q: Company B had an estimated 230,000 direct labor hours, $486,000 manufacturing overhead, and 27,000…

A: Explanation of Predetermined Overhead Rate:Predetermined overhead rate (POR) is a calculated rate…

Q: Answer? ? Financial accounting question

A: To calculate the accounts receivable turnover and the average collection period, we can follow these…

Q: What is her recognised gain

A: To calculate Sarah's recognized gain on the sale of her 180 shares, given her objective to minimize…

Q: Discuss the potential impact of rising inventory

A: Assignment: Discussing the Potential Impact of Rising Inventory Levels--- **I. Impact of Rising…

Q: Solve this question general Accounting

A: Step 1: Define Income StatementIn accounting, the statement of financial performance or the income…

Q: General accounting

A: Step 1:Net Present value can be calculated by subtracting the initial investment from the total…

Q: What is the amount of the over or under applied factory overhead

A: Explanation of Factory Overhead Rate:Factory overhead rate is a predetermined rate used to allocate…

Q: Thompson Company has a standard of 3.1 pounds of materials per unit, at $15.10 per pound. In…

A: Approach to solving the question: Step 1: We need to get the actual and standard cost for the unit…

Q: Please solve this question

A: To calculate the delivery cycle time and the manufacturing cycle time, let's first understand the…

Q: Greenfield Broadcasting failed to make a year end.... Please provide answer the general accounting…

A: The fine of $300,000 should have been reported as an expense, lowering net income. However, because…

Q: None

A: The question requires the determination of the profit per share and the payout ratio. Profit per…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Good Times Restaurant estimates the following costs for next year: fixed costs $120,000, variable cost per meal $15. If they want to earn a profit of $90,000 and charge $35 per meal, calculate the required number of meals. No WRONG ANSWER
Good Times Restaurant estimates the following costs for next year: fixed costs $120,000, variable cost per meal $15. If they want to earn a profit of $90,000 and charge $35 per meal, calculate the required number of meals. Accounting 23
calculate the required number of meals.
?
Answer this Question
Currently, Sweet Treats Bakery sells 1,200 cupcakes per month. The owners would like to increase net income above what is currently earned. Fixed costs are $1,500 per month and their contribution margin is $3 per cupcake. What would be a reasonable net income goal? O $1,800 O $2,600 O $2,100 O $5,600
Assume the total monthly operating costs of a Hardee’s restaurant are: $35,000 + $0.75Xwhere X = Number of burgers ordered Determine the average cost per burger if the monthly volume of burgers ordered is 20,000.
Answer this Financial Accounting Problem
Who Done It Mystery Theater sells tickets for dinner and a show for $55 each. The cost of providing dinner is $40 per ticket and the fixed cost of operating the theater is $100,000 per month. The company can accommodate 15,000 patrons each month. What is the contribution margin ratio?
A college's food operation has an average meal price of $9.20. Variable costs are $4.35 per meal and fixed costs total $95,000. How many meals must be sold to provide an operating income of $33,000? How many meals would have to be sold if fixed costs declined by 23%? (round to the nearest meal) answer
A college's food operation has an average meal price of $9.20. Variable costs are $4.35 per meal and fixed costs total $95,000. How many meals must be sold to provide an operating income of $33,000? How many meals would have to be sold if fixed costs declined by 23%? (round to the nearest meal) answer this accounting question
Required: Number of meals