Nick Strizzi owns and operates a pizza delivery and take-outrestaurant. In 2013, he sold 100,000 pizzas at an averageselling price of $15.00. The cost to make each pizza is $3.00for cheese, $2.50 for spices, and $3.75 for the crust and otheringredients. The annual cost of operating the business is asfollows:$ 55,000$230,000$ 15,000$ 30,000$150,000RentSalariesInsuranceAdvertisingCar expensesThe income tax rate for 2013 was 18%. Nick is preparing aprojected incomeassumptions are as follows:statementfor 2014. The planningIncrease in number of pizzas sold10%Selling price per pizza$ 16.00Increase in cost of cheese8%Increase in cost of spices5%Increase in cost of crust and other9%ingredientsAnnual rent$65,000Increase in salaries12%Increase in insurance costs10%Advertising costsIncrease in car expenses$35,00015%Income tax rate17%309Questions1. Prepare Nick Strizzi's statement of income for 2013and 2014.2. Calculate Nick Strizzi's return on revenue ratios for2013 and 2014.

Statement of Income shows all revenues and expenses of the business and at the end it shows net…

Nick Strizzi owns and operates a pizza delivery and take-out restaurant. In 2013, he sold 100,000 pizzas at an average selling price of $15.00. The cost to make each pizza is $3.00 for cheese, $2.50 for spices, and $3.75 for the crust and other ingredients. The annual cost of operating the business is as follows: $ 55,000 $230,000 $ 15,000 $ 30,000 $150,000 Rent Salaries Insurance Advertising Car expenses The income tax rate for 2013 was 18%. Nick is preparing a projected income statement for 2014. The assumptions are as follows: planning Increase in number of pizzas sold Selling price per pizza 10% $ 16.00 Increase in cost of cheese 8% Increase in cost of spices 5% Increase in cost of crust and other 9% ingredients Annual rent Increase in salaries $65,000 12% Increase in insurance costs 10% Advertising costs Increase in car expenses $35,000 15% Income tax rate 17% 309 Questions 1. Prepare Nick Strizzi's statement of income for 2013 and 2014. 2. Calculate Nick Strizzi's return on revenue ratios for 2013 and 2014.

Nick Strizzi owns and operates a pizza delivery and take-out restaurant. In 2013, he sold 100,000 pizzas at an average selling price of $15.00. The cost to make each pizza is $3.00 for cheese, $2.50 for spices, and $3.75 for the crust and other ingredients. The annual cost of operating the business is as follows: $ 55,000 $230,000 $ 15,000 $ 30,000 $150,000 Rent Salaries Insurance Advertising Car expenses The income tax rate for 2013 was 18%. Nick is preparing a projected income statement for 2014. The assumptions are as follows: planning Increase in number of pizzas sold Selling price per pizza 10% $ 16.00 Increase in cost of cheese 8% Increase in cost of spices 5% Increase in cost of crust and other 9% ingredients Annual rent Increase in salaries $65,000 12% Increase in insurance costs 10% Advertising costs Increase in car expenses $35,000 15% Income tax rate 17% 309 Questions 1. Prepare Nick Strizzi's statement of income for 2013 and 2014. 2. Calculate Nick Strizzi's return on revenue ratios for 2013 and 2014.

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

Underground Food Store has 3,000 pounds of raw beef nearing its expiration date. Each pound has a cost of $4.50. The beef could be sold "as is" for $3.00 per pound to the dog food processing plant, or roasted and sold in the deli. The cost of roasting the beef will be $2.80 per pound, and each pound could be sold for $6.50. What should be done with the beef, and why? If required, round final answers to two decimal places. The beef - processed further since the sales price by $ per pound and the cost only by per pound.
Suppose i have beautiful coffee tables i am building and the materials cost for each table is $135.00 and i pay the craftsman $25.00 per hour and it takes him 5 hours to complete one table . If you sell these tables for $869.00 what is my cost of goods sold percentage
Jenny's Pottery Store is a small retail company that has the following information pertaining to current year operations. Sales (2,500 fruit bowls) Cost of goods sold Manager's salary allocation Rent cost allocation Advertising Commissions (10% of sales) What are the estimated total costs if Jenny's expects to sell 3,000 units next year? A) $86,700 B) $98,700 C) $76,700 D) $88,700 $100,000 45,000 20,000 700 2,000 10,000 E) $84,240
Olga was planning to set up a business where she would purchase paintings for $1,050 per unit and sell them for $1,800 per unit. She wanted to conduct a break-even analysis and identified the following costs for running her business: $4,470.00 per month for store leasing, $54 per month website hosting fee, $5,150 per month for staff salary, $2,040 per month for advertising costs, and $25 per unit for labour charges to pack the paintings. a. How many paintings would she have to sell per month to break-even? Round up to the next whole number b. If she wants to make a profit of $24,000 in a month, how many paintings would she have to sell? Round up to the next whole number
Underground Food Store has 4,000 pounds of raw beef nearing its expiration date. Each pound has a cost of $4.50. The beef could be sold “as is” for $3.00 per pound to the dog food processing plant, or roasted and sold in the deli. The cost of roasting the beef will be $2.80 per pound, and each pound could be sold for $6.50. A) What is the gross profit/loss per pound if the raw beef is sold "as is" to the dog food processing plant? If it is negative, use a dash - not parentheses ( ). B) What is the gross profit/loss per pound if the raw beef is roasted and sold in the deli? If it is negative, use a dash - not parentheses ( ). C) Should the beef be sold "as is" or roasted and sold in the deli?
can u help me
You own a restaurant, your capacity is 100 dinners a day. Your regular price is $30 per dinner. Your variable costs are $10 per dinner. Your fixed costs are $500 per day. On Mondays, business is slow, so you expect to sell only 40 dinners (i.e., you have a lot of unused capacity). Special order: a one-time order that is not considered part of the company's normal ongoing business. A charity organization wants to hold its fundraising dinner in your restaurant on Monday. They offer to pay $15 per dinner, for a total of 50 dinners. Should you take this special order? Why or why not?
Tommy Tomato, Incorporated (TTI) sells organic canned tomato sauces. TTI spends $50,000 purchasing, cutting, washing, grinding, and straining tomatoes into 100,000 liters of plain tomato sauce ($0.50 per liter). At this point, TTI has two choices: a) sell the plain tomato sauce for $2 per liter; or b.) take the 100,000 liters of plain tomato sauce and process them further into a gourmet seasoned pizza sauce that can be sold for $3.10 per liter. The extra seasoning and processing required to convert the plain tomato sauce into gourmet pizza sauce costs TTI $0.75 per liter. TTI can choose to sell the plain tomato sauce as-is at the "split-off point" or decide to process the sauce further into the gourmet sauce. 1. If TTI sells the 100,000 liters of gourmet pizza sauce, how much sales revenue will TTI generate? If TTI decides to simply sell the 100,000 liters of plain tomato sauce without processing it any further, how much sales revenue would TTI generate instead? How much additional…
Trident Ltd makes designer gold bracelets. Their annual costs include shop rent of $12,500, salaries for two jewellers of $118,000, design software costs of $10,000, and other overhead costs of $13,000. An average bracelet is priced at $5,500. It costs $2,000 in raw material, $1,250 in labour, and $250 in other expenses. What is the minimum number of bracelets that need to be sold to earn a profit? a.28 b. 44 c. 77 d. 17
Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $14,850. The booth will be open 33 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $180 per package. She will continue to sell the existing product, EZRecords, which costs $92 per package. Ms. Ortega believes that the salesperson will spend approximately 23 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 70 units of EZRecords and 46 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 192 units of EZRecords and 104 units of ProOffice. Note: For all requirements, round "Cost per unit" to 2 decimal…