6. Your best friend has contacted you about her new bar-b-que restaurant. She has pieced together the following information concerning the revenues and costs as well as her sales volume for her first month of business. $20,475 $ 7,013 $ 5,641 $ 4,400 $ 2,490 Sales Food & Packaging costs Payroll Occupancy (rent, depreciation, etc.) General, selling, & admin expenses She charges $9 per plate. Her fixed costs consist of occupency costs and 60% of the general, selling, & admin expenses. All other expenses are considered variable costs. Compute the following: a. How many plates did your friend serve during this period? How many plates does she have in her margin of safety? If she decides to open 7 days a week instead of 6, she predicts she will increase her sales by 3%. What will her expected b. с. operating income be with the increase in sales? d. If she wants operating income of $2,000 a month, how many plates will she need to serve?

6. Your best friend has contacted you about her new bar-b-que restaurant. She has pieced together the following information concerning the revenues and costs as well as her sales volume for her first month of business. $20,475 $ 7,013 $ 5,641 $ 4,400 $ 2,490 Sales Food & Packaging costs Payroll Occupancy (rent, depreciation, etc.) General, selling, & admin expenses She charges $9 per plate. Her fixed costs consist of occupency costs and 60% of the general, selling, & admin expenses. All other expenses are considered variable costs. Compute the following: a. How many plates did your friend serve during this period? How many plates does she have in her margin of safety? If she decides to open 7 days a week instead of 6, she predicts she will increase her sales by 3%. What will her expected b. с. operating income be with the increase in sales? d. If she wants operating income of $2,000 a month, how many plates will she need to serve?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.1AP

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