How much would profit? Jibba Steakhouse has budgeted the following costs for amonth in which 1,600 steak dinners will be produced andsold:• Materials = $4,080• Hourly labor (variable) = $5,200• Rent (fixed) = $1,755• Depreciation = $770• Other fixed costs = $645Each steak dinner sells for $13.00 each. How much wouldprofit increase if 11 more dinners were sold?

Step 1: DefinitionsContribution Margin:The contribution margin is the amount remaining from sales…

Answered: Jibba Steakhouse has budgeted the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6EB: Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the...

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Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
How much would profit increase?
If 11 more dinners were sold?
Dinner were sold ?
What will be the selling price per unit if Everest gear co. uses a markup of 20% on the total cost?
he production cost information for Blossom's Salsa is as follows: Blossom's Salsa Production Costs April 2020 Production 23,000 Jars of Salsa Ingredient cost (variable) $13, 800 Labor cost (variable ) 9,660 Rent (fixed) 4, 300 Depreciation (fixed) 6,000 Other (fixed) 1,400 Total $35, 160 The company is currently producing and selling 345,000 jars of salsa annually. The jars sell for $7.00 each. The company is considering lowering the price to $6.30. Suppose this action will increase sales to 391, 000 jars. What is the incremental cost associated with producing an extra 46, 000 jars of salsa?
Kramer Company is considering adding a new line of kitchen cabinets which would result in 800 units of sales at a selling price of per year of $3,500 per unit. Data concerning the unit production costs of the cabinets follow:Variable manufacturing costs per unit $1,500 Variable selling costs per unit $350 Incremental fixed costs per year: Manufacturing    $475,400 Selling $55,000 Allocated Common Costs per year: Manufacturing $80,000 Selling and Administrative $112,000If the kitchen cabinets are added as a new product line, the company expects that the contribution margin earned from selling its other products will decrease by $200,000 per year. 1. What is the annual financial advantage (disadvantage) of adding the new line of kitchen…
I am looking for the correct answer to this general accounting problem using valid accounting standards.
The Mighty Music Company produces and sells a desktop speaker for $200. The company has the capacity to produce 60,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit-level costs Product-level costs Facility-level costs The company has received a special order for 11,000 speakers. If this order is accepted, the company will have to spend $20,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order? Multiple Choice O O $96.82 $146.82 $104.32 $95 $25 $15 $107.32
Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $1,760,000 based on a sales volume of 260,000 video disks. Disk City has been selling the disks for $19 each. The variable costs consist of the $8 unit purchase price of the disks and a handling cost of $2 per disk. Disk City’s annual fixed costs are $580,000. Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 30 percent. (Ignore income taxes.) Q. What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $19? (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
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Moti Bakery produces various baked goods. Utility costs are allocated to the products based on the baking time required for each product. Total utility costs of $270,000 are budgeted in a period when 540,000 total minutes of baking time are anticipated. If a batch of bagels bakes for 25 minutes, what amount of utility cost will be allocated to the bagels? I want answer

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