Rachael's Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs eight people; one is a manager paid a salary plus a bonus equal to 4 percent of sales. Other employees, two cooks, one dishwasher, and four servers, are paid salaries. Each manager is budgeted $3,000 per month for advertising costs. Required Classify each of the following costs incurred by Rachael's Restaurant as fixed, variable, or mixed: a. Advertising costs relative to the number of customers for a particular restaurant. Fixed cost b. Rental costs relative to the number of restaurants. Variable cost c. Cooks' salaries at a particular location relative to the number of customers. Fixed cost d. Cost of supplies (cups, plates, spoons, etc.) relative to the number of customers. Variable cost e. Manager's compensation relative to the number of customers. Mixed cost f. Servers' salaries relative to the number of restaurants. Variable cost

Rachael's Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs eight people; one is a manager paid a salary plus a bonus equal to 4 percent of sales. Other employees, two cooks, one dishwasher, and four servers, are paid salaries. Each manager is budgeted $3,000 per month for advertising costs. Required Classify each of the following costs incurred by Rachael's Restaurant as fixed, variable, or mixed: a. Advertising costs relative to the number of customers for a particular restaurant. Fixed cost b. Rental costs relative to the number of restaurants. Variable cost c. Cooks' salaries at a particular location relative to the number of customers. Fixed cost d. Cost of supplies (cups, plates, spoons, etc.) relative to the number of customers. Variable cost e. Manager's compensation relative to the number of customers. Mixed cost f. Servers' salaries relative to the number of restaurants. Variable cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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