9. Short answer (calculation) question. In the Ocean View Restaurant, the actual food cost in July 2022 was $32,000, and thefood sales were $128,000. The standard food cost percentage in July 2022 was 5.0% lower than the actual food cost percentagein that month. What were the potential savings in this restaurant in July 2022 in dollars and in %? Show the full calculation,not just the final answers, and round all calculations to hundredths of decimal unless they naturally round up to tenths or awhole number..

Standard Potential :— Standard Potential means the Minimum value of Sales or Goods, Purchase or…

Answered: 9. Short answer (calculation) question.…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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Maria Stevens is calculating the break-even point in number of customers to be achieved in 2024 in the newly opened Ancora, Peruvian restaurant in Yale Town, where she works as a manager. She knows that the variable cost per unit in this restaurant is $5.65, and the average selling price per unit is $15.40. The fixed costs are forecasted to be $143,060.60. What will be the breakeven number of customers in this restaurant in 2024? Show the full calculation and round all results to two decimal places unless they naturally round up to one decimal place or a whole number. Round the final result to a whole number.
What is the procedure to answer these questions, please? Last year a local restaurant realized sales of $300,000 with fixed costs of $110,000 and total variable costs of $70,000. 1. What was the restaurants contribution rate (as a decimal) last year? 2. If the restaurant has the same contribution rate this year, what net income can be expected this year from a revenue of $180,000? 3. If the restaurant has the same fixed and variable costs this year, what sales this year will result in a profit of $29,000? 4. Suppose that the fixed costs this year rise to $130,000 and the variable costs remain the same. What is break-even revenue?
In a slow year, Deutsche Burgers will produce 3.2 million hamburgers at a total cost of $5.4 million. In a good year, it can produce 5.4 million hamburgers at a total cost of $6.1 million. What are the fixed costs of hamburger production? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places. What is the variable cost per hamburger? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. What is the average cost per burger when the firm produces 2 million hamburgers? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. What is the average cost per burger when the firm produces 3 million hamburgers? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Why is the average cost lower when more burgers are produced?
In a slow year, Deutsche Burgers will produce 4 million hamburgers at a total cost of $4.8 million. In a good year, it can produce 5.2 million hamburgers at a total cost of $5.8 million. a. What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) b. What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is the average cost per burger when the firm produces 3 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What is the average cost per burger when the firm produces 4 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. Why is the average cost lower when more burgers are produced?
Projected financial results for the university's cafeteria for next year are shown. Answer each of the following independent questions. Sales $944,000 Fixed Cost $597,000 Total Variable Cost $235, 470 Total Cost $832, 470 Net Income $111,530 (a) How much is the contribution margin and the contribution rate?(b) How much does the business need to sell to break even?(c) If the business was to spend $24,000 to upgrade their processes, how much does the business need to sell to break even?(d) If 9% more meals were sold, what would be the resulting net income?
A company wants to decrease their energy use by 16%. If their electric bill is currently $2,700 a month, what will their bill be if they are successful? Give your answer accurate to at least the nearest dollar.$If the company's electric bill for next month is $2214, should that be considered a success? Yes, that is a success No, that is not a success
Salam is thinking about opening a lunchtime restaurant on a busy street. Salam estimates that all the restaurants on this street together serve 21,918 lunches on a typical day. Opening the new lunchtime restaurant will require $6,207 in fixed costs. Salam believes that he can earn a margin of $4.10 on each lunch his new restaurant serves. Calculate breakeven MARKET SHARE for Salam's new restaurant. Report your answer as a percent. Report 25.5%, for example, as "25.5". Rounding: tenth of a percent.
Reset cells to their initial values. Sweet Pleasures, Inc., is considering undertaking a 1,200 per month advertising campaign to promote Sweet Pleasures chocolate as exclusive and extraordinarily tasty. What price (dollars and cents) would Sweet Pleasures have to charge for each box to be able to pay for the campaign, pay back the 10,000 note, and have 15,000 left over at the end of April? (Try different prices in cell C9.) Sales price ___
Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
Keleher Industries manufactures pet doors and sells them directly to the consumer via their web site. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and associated increase in sales. The previous annual statement is as follows:
Calculate the hotels margin of safety (both in units and in sales dollars) for Many Glacier Hotel, assuming the same facts as in Requirement 3, and assuming that it sells 700 canoes and 2,500 paddles next year.
Use the following information to answer questions 6 & 7 Trader Tom's makes and sells frozen 4-cheese pizzas, New York style. The expected selling price is $10 per pizza. The projected variable cost per pizza is $6. The estimated fixed costs per month are $12,000. Determine the number of pizzas that must be sold to make a monthly Net Income of $20,000? If fixed costs increase by $5,000 and 6,000 pizzas are sold in a given month, determine the Net Income for that month?

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