Chloe's Cafe bakes croissants that it sells to local restaurants and grocery stores. The average costs to bake the croissants are $0.70 for 3,900 and $0.65 for 7,800. Required: If the total cost function for croissants is linear, what will be the average cost to bake 7,000? (Do not round intermediate calculations. Round your final answer to 4 decimal places.) Average cost

Chloe's Cafe bakes croissants that it sells to local restaurants and grocery stores. The average costs to bake the croissants are $0.70 for 3,900 and $0.65 for 7,800. Required: If the total cost function for croissants is linear, what will be the average cost to bake 7,000? (Do not round intermediate calculations. Round your final answer to 4 decimal places.) Average cost

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6EB: Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the...

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Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?
Chloe’s Cafe bakes croissants that it sells to local restaurants and grocery stores. The average costs to bake the croissants are $0.55 for 2,500 and $0.50 for 5,000. If the total cost function for croissants is linear, what will be the average cost to bake 4,200? Do not round intermediate calculations. Round your final answer to 4 decimal places.
Chloe’s Cafe bakes croissants that it sells to local restaurants and grocery stores. The average costs to bake the croissants are $0.70 for 2,600 and $0.65 for 5,200, If the total cost function for croissants is linear, what will be the average cost to bake 4,400?
Carondelet Coffee has begun making and selling pastries. The fixed costs of making the pastry are $4,000, and the company estimates that the variable costs are $.75 per pastry. How many pastries does Carondelet have to sell to earn net income of $5,000 if it sells each pastry for $3 apiece?
Please explain the step so I can understand. Gobblecakes is a bakery that specializes in cupcakes. The annual fixed cost to make cupcakes is $18,000. The variable cost including ingredients and labor to make a cupcake is $0.90. The bakery sells cupcakes for $3.20 apiece. (a). If the bakery sells 12,000 cupcakes annually, determine the total cost, total revenue, and profit. (b). How many cupcakes will the bakery need to sell in order to break even?
Rumba Dance Hall has offered to buy from Muy Bueno Bakery 100 of their chocolate cakes for $25 each. No variable selling costs would need to be paid, but special packaging of $100 will have to be added. Normally, Muy Bueno sells its cakes at $35 each. Its costs per cake are materials, $12; direct labor, $5; variable factory overhead, $3; fixed factory overhead, $2; and variable selling costs, $4. How much net differential income or loss will Muy Bueno make if it accepts this offer?
The manager of a restaurant found that the cost to produce 150 cups of coffee is $84, while the cost to produce 250 cups is $134. Assume the relationship between the cost y to produce x cups of coffee is linear. a. Write a linear equation that expresses the cost, y, in terms of the number of cups of coffee, x. b. How many cups of coffee are produced if the cost of production is $254.00?
The Junior League of Yadkinville, California, collected recipes from members and published a cookbook entitled Food for Everyone. The book will sell for $18 per copy. The chairwoman of the cookbook development committee estimated that the club needed to sell 2,000 books to break even on its $4,000 investment. What is the variable cost per unit assumed in the Junior League's analysis?$fill in the blank 1 per unit
Jordahl's grocery store has a small bakery that sells a variety of baked goods. Sales from the bakery average less than 5 percent of the store's total revenue and is considered a cost center. As a means of attracting customers , the bakery manager has decided to sell a cup of coffee and doughnut combo at low price price of $ 2.00. Incremental material costs associated with each combo sale average 0.50 per donut and $ 0.60 per serving of coffee (including a disposable cup). Incremental labor and overhead costs are expected to average $0.80 per combo sale . What is the contribution margin of a combo sale ? How might the manager think the combo will affect the bakery's responsibility margin ?
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made. The pizzeria’s cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.60 Kitchen staff $ 5,950 Utilities $ 630 $ 0.50 Delivery person $ 3.30 Delivery vehicle $ 650 $ 1.70 Equipment depreciation $ 416 Rent $ 1,910 Miscellaneous $ 750 $ 0.25 In November, the pizzeria budgeted for 1,620 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 1,720 Deliveries 220 Revenue $ 29,810 Pizza ingredients $ 7,570 Kitchen staff $ 5,890 Utilities $ 895 Delivery person $ 726…
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made. The pizzeria’s cost formulas appear below: Fixed Cost per MonthCost per PizzaCost per DeliveryPizza ingredients $ 4.10 Kitchen staff$ 6,290 Utilities$ 800$ 0.20 Delivery person $ 3.00Delivery vehicle$ 820 $ 2.20Equipment depreciation$ 552 Rent$ 2,250 Miscellaneous$ 920$ 0.10 In November, the pizzeria budgeted for 2,130 pizzas at an average selling price of $18 per pizza and for 250 deliveries. Data concerning the pizzeria’s actual results in November were as follows: Actual ResultsPizzas2,230Deliveries230Revenue$ 40,880Pizza ingredients$ 10,630Kitchen staff$ 6,230Utilities$ 980Delivery person$ 690Delivery vehicle$ 1,024Equipment depreciation$ 552Rent$ 2,250Miscellaneous$ 904 Required:  1.…
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made. The pizzeria’s cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.90 Kitchen staff $ 6,010 Utilities $ 660 $ 0.80 Delivery person $ 2.60 Delivery vehicle $ 680 $ 2.00 Equipment depreciation $ 440 Rent $ 1,970 Miscellaneous $ 780 $ 0.10 In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria’s actual results in November were as follows: Actual Results Pizzas 1,810 Deliveries 170 Revenue $ 36,800 Pizza ingredients $ 8,110 Kitchen staff $ 5,950 Utilities $ 910 Delivery person $…