Answer:
Please see attached detailed explanation.
Explanation:
Please find attached detailed preparation of income statement, balance sheet and cash flow statement for the above.
The owner of Miller Restaurant is disappointed because the restaurant has been averaging 7,500 pizza sales per month but the res
taurant and wait staff can make and serve 10,000 pizzas per month. The variable cost (for example, ingredients) of each pizza is $1.55. Monthly fixed costs (for example, depreciation, property taxes, business license, manager's salary) are $12,000 per month. The owner wants cost information about different volumes so that some operating decisions can be made.REQUIREMENTS:1) Fill in the following chart to provide the owner with the cost information. Then use the completed chart to help you answer the remaining questions:Monthly pizza volume 6,000 7,500 10,000 Total fixed costs Total variable costs Total costs Fixed cost per pizza Variable cost per pizza Average cost per pizza Selling price per pizza S 6.25 S 6.25 S 6.25 Average profit per pizza2) From a cost standpoint, why do companies such as Miller Restaurant want to operate near or at full capacity?3) The owner has been considering ways to increase the sales volume. The owner thinks that 10,000 could be sold per month by cutting the selling price per pizza from $6.25 to $5.75. How much extra profit (above the current level) would be generated if the selling price were to be decreased? (HINT: Find the restaurant's current monthly profit and compare it to the restaurant's projected monthly profit at the new sales price and volume.)
1 answer:
Answer: The answer is provided and attached below.
Explanation:
The explanation for number 1 and 3 has been attached.
2. The break even point is level of production whereby a company makes no profit or loss. When a company operates below the break even point, the company makes a loss and when a company operates above this level, the company make a profit. The higher the level, the higher the profit.
Therefore, from a cost point of view, Miller restaurant and every other company wants to operate at the full or near full capacity in order to earn higher level of profit. At this point, the fixed costs have been recovered, and every additional unit makes up the profit of the company.
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Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinced that it needs a 45% markup based on cost. The most that Ski Market can pay to its supplier for the snowboards is $71.49.
Explanation:
- people will pay for the snowboards is $129.99.
- Ski Market is convinced that it needs a 45%
- The most that Ski Market can pay to its supplier for the snowboard is
- =
×45
- =$ 58.5
- =129.99 ±58.5
- = $71.49
- Therefore, Ski Market can pay to its supplier for the snowboards is $71.49.
Answer:
5.52%
Explanation:
Cost of Furniture= $150,000
discount= 5.25% (120-day note)
To get the exporter's true effective annual financing cost, we have:
=(150,000/147,375) 365/120-1 = 5.52%
Therefore, the exporter's true effective annual financing cost is 5.52%
Answer:
a) Income of $272,428 or more would be top 1%.
b) Skewed right
c) Not always normally distributed
Explanation:
We are given the following information in the question:
Mean, μ = $77,044
Standard Deviation, σ = $84,000
Median = $58,423
a) We follow a normal mode
Formula:
We have to find the value of x such that the probability is 0.01
P(X > x)
Calculation the value from standard normal z table, we have,
Thus, income of $272,428 or more would be top 1%.
b) We should not be confident as the median is not equal to the mean. Hence, it is not a normal distribution. It was just an assumption. Since the mean is greater than the median the distribution of income is skewed towards right.
c) Normal model not be a good one for incomes because the median may not always e equal to the mean and hence, they do not follow a normal distribution.