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Domino’s Pizza L.L.C. operates pizza delivery and carry-out restaurants. The annual report describes its business as follows:
We offer a focused menu of high-quality, value-priced pizza with three types of crust (Hand- Tossed. Thin Crust, and Deep Dish), along with buffalo wings, bread sticks, cheesy bread. CinnaStix®, and Coca-Cola® products. Our band-tossed pizza is made from fresh dough produced in our regional distribution centers. We prepare every pizza using real cheese, pizza sauce made from fresh tomatoes, and a choice of high-quality meat and vegetable toppings in generous portions. Our focused menu and use of premium ingredients enable us to consistently and efficiently produce the highest-quality pizza.
Over the 41 years since our founding, we have developed a simple. cost-efficient model. We offer a limited menu, our stores are designed for delivery and carry-out, and we do not generally offer dine-in service. As a result, our stores require relatively small, lower-rent locations and limited capital expenditures.
How would a master budget support planning, directing, and control for Domino's?
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Chapter 22 Solutions
Accounting (Text Only)
- Why Does It Matter? MACS CUSTOM CATERING, Eugene, Oregon Macs Custom Catering, an award-winning catering business located in Eugene, Oregon, specializes in providing only the best for you and your guest. Macs Custom Catering has been in business for over 30 years and is experienced in providing catering services at weddings, corporate events, and large sit-down events. It offers several signature buffet options, including Northwest Bounty, Hawaiian Luau, and Italian Fest. Imagine that you have been hired to set up the accounting system for a catering business such as Macs. What accounts would be included in the chart of accounts? As you list the accounts, identify the type of account. Is the account an asset, a liability, or owners equity?arrow_forwardThe Atlantic Seafood Company (ASC) is a buyer and distributor of seafood products that are sold to restaurants and specialty seafood outlets throughout the Northeast. ASC has a frozen storage facility in New York City that serves as the primary distribution point for all products. One of the ASC products is frozen large black tiger shrimp, which are sized at 16 to 20 pieces per pound. Each Saturday, ASC can purchase more tiger shrimp or sell the tiger shrimp at the existing New York City warehouse market price. ASCs goal is to buy tiger shrimp at a low weekly price and sell it later at a higher price. ASC currently has 20,000 pounds of tiger shrimp in storage. Space is available to store a maximum of 100,000 pounds of tiger shrimp each week. In addition, ASC developed the following estimates of tiger shrimp prices for the next four weeks: ASC would like to determine the optimal buying/storing/selling strategy for the next four weeks. The cost to store a pound of shrimp for one week is 0.15, and to account for unforeseen changes in supply or demand, management also indicated that 25,000 pounds of tiger shrimp must be in storage at the end of week 4. Determine the optimal buying/storing/selling strategy for ASC. What is the projected four-week profit? (Hint: Define variables for buying, selling, and inventory held in each week. Then use a constraint to define the relationship between these: inventory from end of previous period + bought this period sold this period = inventory at end of this period. This type of constraint is referred to as an inventory balance constraint.)arrow_forwardPlot the relationship between number of orders per week and weekly total costs.arrow_forward
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- Southeast Suites operates a regional hotel chain. Each hotel is operated by a manager and an assistant manager/controller. Many of the staff who run the front desk, clean the rooms, and prepare the breakfast buffet to work part-time or have a second job, so employee turnover is high. Assistant manager/controller Terry Dunn asked the new bookkeeper to help prepare the hotel’s master budget. The master budget is prepared once a year and is submitted to the company headquarters for approval. Once approved, the master budget is used to evaluate the hotel’s performance. These performance evaluations affect hotel managers’ bonuses, and they also affect company decisions on which hotels deserve extra funds for capital improvements.< When the budget was almost complete, Dunn asked the bookkeeper to increase amounts budgeted for labor and supplies by 15%. When asked why Dunn responded that hotel manager Clay Murry told her to do this when she began working at the hotel. Murry explained that…arrow_forwardMary'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 2.00arrow_forwardNeed helparrow_forward
- Carleigh, Inc., is a pork processor. Its plants, located in the Midwest, produce several products from a common process: sirloin roasts, chops, spare ribs, and the residual. The roasts, chops, and spare ribs are packaged, branded, and sold to supermarkets. The residual consists of organ meats and leftover pieces that are sold to sausage and hot dog processors. The joint costs for a typical week are as follows: The revenues from each product are as follows: sirloin roasts, 68,000; chops, 71,000; spare ribs, 33,000; and residual, 9,800. Carleighs management has learned that certain organ meats are a prized delicacy in Asia. They are considering separating those from the residual and selling them abroad for 52,000. This would bring the value of the residual down to 2,650. In addition, the organ meats would need to be packaged and then air freighted to Asia. Further processing cost per week is estimated to be 27,500 (the cost of renting additional packaging equipment, purchasing materials, and hiring additional direct labor). Transportation cost would be 12,100 per week. Finally, resource spending would need to be expanded for other activities as well (purchasing, receiving, and internal shipping). The increase in resource spending for these activities is estimated to be 3,120 per week. Required: 1. What is the gross profit earned by the original mix of products for one week? 2. Should the company separate the organ meats for shipment overseas or continue to sell them at split-off? What is the effect of the decision on weekly gross profit?arrow_forwardCrane Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center. Selected results from the latest year are as follows: Retail Stores Internet Catalog Sales Sales revenue $10,130,000 $4,080,000 $3,400,000 Variable expenses 4,080,000 1,630,000 1,930,000 Direct fixed expenses 4,580,000 1.130.000 1,330,000 Average assets 8,080,000 4,080,000 1,600,000 Required rate of return 10% 10% 10% (a) Your answer is incorrect. Calculate the current residual income for each distribution channel. (If the residual income is a loss then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Residual Income $ Retail $ Online $ Catalogarrow_forwardMaulana Sdn Bhd (MSB) manufactures and sells two types of products: Pastry roller and Pastry puff .Each unit of product consumes two types of materials, butter and cheese. MSB is preparing its annual budget for the year ending December 31, 2018. The Assistant Accountant provides the following data: Pastrv roller Pastry puff Sales unit 65,000 55,000 Unit selling price RM30 RM20 MSB decided that the beginning and ending inventory for the year 2018 are as follow: Product Beginning inventory(units) Ending inventory(units) Pastry roller 8,000 9,000 Pastry puff 5,000 4,000 +The following materials are needed for the production of pastry roller and pastry puff: Materials: Pastry roller Pastry puff Beginning Ending inventory (kg) inventory (kg) Butter 10 kg 8 kg 272,000 290,000 Cheese 4 kg 3 kg 60,000 41 ,000 Materials: Price per kg Butter RM2.00 Cheese RM8.00 Direct labour per unit and direct labour co ber unit is given below: Hours needed Rate per hour Pastry roller 2 hours Pastry puff 1.5…arrow_forward
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