Trumball Catering served 4,500 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used. Direct labor Indirect materials and supplies. Utilities Depreciation on trucks and equipment (straight-line, unit basis) Fixed costs: Managers' salaries. Rent Depreciation on equipment (straight-line, time basis) Miscellaneous fixed costs Total variable costs Total fixed costs Total costs Unit costs $ $ $ $ $ 10,700 23,500 10,300 4,250 8,200 Required: Trumball expects to serve 30 percent more meals in the next month. Unit variable costs are expected to remain unchanged. The controller at Trumball knows that if the business caters over 4,950 meals in a month, the company must hire an additional manager (part-time) at a cost of $3,474 for the month. Miscellaneous fixed costs are expected to increase by 15 percent. Calculate the unit cost and the total cost if expectations for costs and volume are met next month. Note: Do not round intermediate calculations. Round "Unit costs" answer to 2 decimal places. 74,035 66,649 140,684 10.36 $ 31,200 16,700 10,100 4,500

Trumball Catering served 4,500 meals last month. Trumball recorded the following costs with those meals: Variable costs: Ingredients used. Direct labor Indirect materials and supplies. Utilities Depreciation on trucks and equipment (straight-line, unit basis) Fixed costs: Managers' salaries. Rent Depreciation on equipment (straight-line, time basis) Miscellaneous fixed costs Total variable costs Total fixed costs Total costs Unit costs $ $ $ $ $ 10,700 23,500 10,300 4,250 8,200 Required: Trumball expects to serve 30 percent more meals in the next month. Unit variable costs are expected to remain unchanged. The controller at Trumball knows that if the business caters over 4,950 meals in a month, the company must hire an additional manager (part-time) at a cost of $3,474 for the month. Miscellaneous fixed costs are expected to increase by 15 percent. Calculate the unit cost and the total cost if expectations for costs and volume are met next month. Note: Do not round intermediate calculations. Round "Unit costs" answer to 2 decimal places. 74,035 66,649 140,684 10.36 $ 31,200 16,700 10,100 4,500

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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