A Restaurant is open only for 25 days in a month. Expenses for the restaurant include raw material for each sandwich at $4.00 per slice, $1,130.00 as monthly rental and $223.00 monthly as insurance. They consider the cost of lost sales as $5.00 per item. They are able to sell any leftover sandwiches for $3. They prepares 200.00 sandwiches and sells them at a rate of $12.00/sandwich. Today there was a party at nearby office so the demand for sandwiches rose to 224.00. How much profit did the restaurant earn today?

A Restaurant is open only for 25 days in a month. Expenses for the restaurant include raw material for each sandwich at $4.00 per slice, $1,130.00 as monthly rental and $223.00 monthly as insurance. They consider the cost of lost sales as $5.00 per item. They are able to sell any leftover sandwiches for $3. They prepares 200.00 sandwiches and sells them at a rate of $12.00/sandwich. Today there was a party at nearby office so the demand for sandwiches rose to 224.00. How much profit did the restaurant earn today?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a...

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