Jerry Seavolt is requesting your assistance in determining a cost equation for foreasting his expenses for his Maple Valley Restaurant. He provides costs at two extremes as follows: 1. Identify each cost as fixed, variable or mixed 2. What are the estimated monthly fixed costs (including the fixed portion of mixed costs)? 3. What are the estimated variable costs per cover sold? Monthly Covers Monthly Covers 4,000 8,000 Cost of food sold $12,000 $24,000 Salaries $10,000 $10,000 Wages $10,000 $20,000 Employee Benefits $6,000 $8,000 Supplies $3,000 $6,000 Utilities $2,000 $3,000 Rent $2,000 $4,000 Other operating costs $4,000 $5,000 Insurance $1,000 $1,000 Depreciation $1,200 $1,200 Property taxes $1,500 $1,500
Jerry Seavolt is requesting your assistance in determining a cost equation for foreasting his expenses for his Maple Valley Restaurant. He provides costs at two extremes as follows: 1. Identify each cost as fixed, variable or mixed 2. What are the estimated monthly fixed costs (including the fixed portion of mixed costs)? 3. What are the estimated variable costs per cover sold? Monthly Covers Monthly Covers 4,000 8,000 Cost of food sold $12,000 $24,000 Salaries $10,000 $10,000 Wages $10,000 $20,000 Employee Benefits $6,000 $8,000 Supplies $3,000 $6,000 Utilities $2,000 $3,000 Rent $2,000 $4,000 Other operating costs $4,000 $5,000 Insurance $1,000 $1,000 Depreciation $1,200 $1,200 Property taxes $1,500 $1,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 32
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Jerry Seavolt is requesting your assistance in determining a cost equation for foreasting his expenses for his Maple Valley Restaurant. He provides costs at two extremes as follows:
1. Identify each cost as fixed, variable or mixed
2. What are the estimated monthly fixed costs (including the fixed portion of mixed costs)?
3. What are the estimated variable costs per cover sold?
Monthly Covers Monthly Covers 4,000 8,000 Cost of food sold $12,000 $24,000 Salaries $10,000 $10,000 Wages $10,000 $20,000 Employee Benefits $6,000 $8,000 Supplies $3,000 $6,000 Utilities $2,000 $3,000 Rent $2,000 $4,000 Other operating costs $4,000 $5,000 Insurance $1,000 $1,000 Depreciation $1,200 $1,200 Property taxes $1,500 $1,500
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