Mary's Kitchen sells three types of soups: tomato basil, cheddar dill, and loaded potato. The following table shows the sales price and variable cost for each type. Mary incurs $160,000 a year in fixed costs. Assume that the restaurant has a sales mix of two tomato basil servings, two cheddar dill servings and one loaded potato serving. Type Tomato basil Cheddar dill Loaded potato (b) Show Transcribed Text Tomato basil Sales Price Cheddar dill $2.00 4.00 Loaded potato 4.00 $ $ Variable Cost $ $1.00 What amount of revenue would need to be generated by each type of soup for the company to earn $20,000 in operating income? (Round answers to O decimal places, e.g. 25,000.) 2.00 2.00 Contribution Margin $1.00 2.00 2.00

Mary's Kitchen sells three types of soups: tomato basil, cheddar dill, and loaded potato. The following table shows the sales price and variable cost for each type. Mary incurs $160,000 a year in fixed costs. Assume that the restaurant has a sales mix of two tomato basil servings, two cheddar dill servings and one loaded potato serving. Type Tomato basil Cheddar dill Loaded potato (b) Show Transcribed Text Tomato basil Sales Price Cheddar dill $2.00 4.00 Loaded potato 4.00 $ $ Variable Cost $ $1.00 What amount of revenue would need to be generated by each type of soup for the company to earn $20,000 in operating income? (Round answers to O decimal places, e.g. 25,000.) 2.00 2.00 Contribution Margin $1.00 2.00 2.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A chocolatier produces and sells boxes of chocolates for which the fixed costs are $300 and the variablecost per box is $4. Each box of chocolate has a selling price of $20. Determine the number of boxes that must besold for the chocolatier to earn a profit of $4500
A restaurant bakes its own bread for a cost of $152 per unit (100 loaves), including fixed costs of $34 per unit. A proposal is offered to purchase bread from an outside source for $100 per unit, plus $11 per unit for delivery. Prepare a differential analysis dated July 7 to determine whether the company should Make Bread (Alternative 1) or Buy Bread (Alternative 2), assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisMake Bread (Alt. 1) or Buy Bread (Alt. 2)July 7 MakeBread(Alternative 1) BuyBread(Alternative 2) DifferentialEffect(Alternative 2) Unit Costs: Purchase price $fill in the blank a6b98b004fd0039_1 $fill in the blank a6b98b004fd0039_2 $fill in the blank a6b98b004fd0039_3 Delivery fill in the blank a6b98b004fd0039_4 fill in the blank a6b98b004fd0039_5 fill in the blank a6b98b004fd0039_6 Variable costs…
Make or Buy A restaurant bakes its own bread for a cost of $156 per unit (100 loaves), including fixed costs of $35 per unit. A proposal is offered to purchase bread from an outside source for $101 per unit, plus $12 per unit for delivery. Prepare a differential analysis dated July 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "O". For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Make Bread (Alt. 1) or Buy Bread (Alt. 2) July 7 Differential Effect Make Bread (Alternative 1) (Alternative 2) Buy Bread on Income (Alternative 2) Sales price $0 $0 $0 Unit Costs: 101 X 101 X Purchase price 0 12 X 12 Delivery X Variable costs 121 121 35 X 35 X 0 Fixed factory overhead 156 X 148 Income (Loss) X X
Delish Inc, produces frozen meals and provided the following relevant sales and cost data: Sales and Cost Data Accounts Amounts Sales per unit $8 Variable costs per unit $2 Fixed costs $3000 per month If Delish expects to sell 2,000 units, compute the margin of safety in dollars. (Round any intermediate calculations to the nearest whole unit, and your final answer to the nearest dollar.) Group of answer choices $3,000 $12,000 $4,000 $16,000
Café Tropical is a local restaurant specializing in tropical cuisine. Among its various Hawaiian-themed menu item is the popular "Surprise-Me-Smoothie." The smoothies are sold to regular customers at a price of $6.50 per smoothie. The café typically sells 40 smoothies during breakfast. At this quantity, the smoothies cost the café $2.50 each to make - $2.00 of the cost is variable and $0.50 of the cost is fixed. The restaurant is currently operating at 80% capacity during the breakfast hour. The only menu item offered during breakfast is the smoothie. The café is considering accepting a special catering order for their "Surprise-Me-Smoothie" from the Jazzagals before they depart for their a cappella competition. The Jazzagals will need the smoothies ready for breakfast, one of the café's busiest times. The Jazzagals need 30 smoothies and would like a discounted price of $4.50 per smoothie because of the quantity. What will be the effect on operating income if Café Tropical accepts the…
Dhapa
Make or Buy A restaurant bakes its own bread for a cost of $160 per unit (100 loaves), including fixed costs of $32 per unit. A proposal is offered to purchase bread from an outside source for $97 per unit, plus $8 per unit for delivery. Prepare a differential analysis dated July 7 to determine whether the company should Make Bread (Alternative 1) or Buy Bread (Alternative 2), assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Bread (Alt. 1) or Buy Bread (Alt. 2) July 7 MakeBread(Alternative 1) BuyBread(Alternative 2) DifferentialEffect(Alternative 2) Unit Costs: Purchase price $fill in the blank $fill in the blank $fill in the blank Delivery fill in the blank fill in the blank fill in the blank Variable costs fill in the blank fill in the blank fill in the blank Fixed factory overhead fill in the…
please show all work and preferably on paper Question 2. The marketing manager for Tim Hortons is attempting to price a cup of coffee. She knows that the cost of the coffee is $0.14 per cup, and expenses are 30% of the regular selling price. She would like the coffee to achieve an 88.24% markup on selling price.a) What is the regular selling price for a cup of coffee?b) What is the profit per cup?c) What is the markup on cost percentage?
1.Make or Buy A restaurant bakes its own bread for a cost of $148 per unit (100 loaves), including fixed costs of $33 per unit. A proposal is offered to purchase bread from an outside source for $98 per unit, plus $8 per unit for delivery. Prepare a differential analysis dated July 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Replace Equipment A machine with a book value of $246,600 has an estimated six-year life. A proposal is offered to sell the old machine for $216,500 and replace it with a new machine at a cost of $282,700. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $49,400 to $39,500. Prepare a differential analysis dated October 3 on whether to continue with the…
Make or Buy A restaurant bakes its own bread for a cost of $164 per unit (100 loaves), including fixed costs of $36 per unit. A proposal is offered to purchase bread from an outside source for $101 per unit, plus $7 per unit for delivery. Prepare a differential analysis dated July 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Bread (Alt. 1) or Buy Bread (Alt. 2) July 7 Make Bread(Alternative 1) Buy Bread(Alternative 2) Differential Effecton Income(Alternative 2) Sales price $0 $0 $0 Unit Costs: Purchase price $fill in the blank 8210b8fd505bf94_1 $fill in the blank 8210b8fd505bf94_2 $fill in the blank 8210b8fd505bf94_3 Delivery fill in the blank 8210b8fd505bf94_4 fill in the blank 8210b8fd505bf94_5…
A popular e-commerce company caters to online food ordering and dining customers. They have three plans in which customer can opt for given below (In Rs): Delivery Cost Per Meal Discount on Dining Meal Delivery Cost Per Meal Plans Annual Membership Cost without Surge with Surge Basic 0.00% 25 50 0 Pro 25.00% 0 25 2000 Pro Plus 40.00% 0 0 4000 A typical customer has the following three scenarios for annual demand: No of No of Delivery Meals No of Delivery Meals without surge with surge Dining meals Scenario 1 10 30 0 Scenario 2 30 80 30 Scenario 3 50 50 50 On average, a dining meal cost at Rs 400 in restaurant (without any discount) and delivery meal cost Rs. 250 (Without any delivery charges). A typical customer decides her decision to choose plan based on the total annual cost (dining meal cost after discount + delivery meal cost including delivery charge + membership cost). Question 37 to 45 Please find the total annual cost for different combination of plan and scenarios Scenario 1…
The Hillside Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range. Phil Weld, the manager of Hillside, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows. Percent of Contribution Total Sales Margin Ratio Appetizers 15% 50% Main entrees 50% 25% Desserts 10% 50% Beverages 25% 80% Phil is considering a variety of options to try to improve the profi tability of the…