A restaurant prepares 200.00 pizza slices and sells them at a rate of $12.00/slice. Expenses for the restaurant include raw material for pizza at $5.00 per slice, $103.00 for monthly rental and monthly insurance of $30.00. Lost sale are taken as $6.00 per unhappy customer. Leftover pizza can be sold for $2.00. The restaurant is open only for 25 days in a month. Today there was a party at nearby office so the demand for pizza went up to 223.00 slices. How much profit could the restaurant earn today?

Answers

Answer 1
Answer:

Answer:

$1428

Explanation:

Profit = Total Revenue - total cost

total revenue = price x quantity sold

total cost = variable cost + fixed cost

total revenue = 223 x $12 = $2676

Variable cost = $5 x 223 = $1115

total fixed cost = $103.00 + $30.00 = $133.00.

Total cost = $1115 + $133 = $1248

profit =  $2676 - $1248 = $1428


Related Questions

Clovix Corporation has $50 million in​ cash, 10 million shares​ outstanding, and a current share price of $30. Clovix is deciding whether to use the $50 million to pay an immediate special dividend of $5.00 per​ share, or to retain and invest it at the​ risk-free rate of 10% and use the $5.00 million in interest earned to increase its regular annual dividend of $0.50 per share. Assume perfect capital markets. a. Suppose Clovix pays the special dividend. How can a shareholder who would prefer an increase in the regular dividend create it on her​ own? b. Suppose Clovix increases its regular dividend. How can a shareholder who would prefer the special dividend create it on her​ own?
During the first five years of operations, Red Raider consulting reports net income and pays dividends as follows.Year Net Income Dividends Retained Earnings1 $1200 $500 2 1700 500 3 2100 1000 4 3200 1000 5 4400 1000 Calculate the balance of retained earnings at the end of each year.
Use the following words to fill in the blanks in the statements below about the market for loanable funds. Choose from: demanded, supplied; left, right; higher, lowera. A change that makes people want to save less will shift the loanable funds _______ line to the ______. The resulting new equilibrium in the market for loanable funds would be a ______ interest rate and a ______ quantity of funds saved and invested.
"Charles Dow was the original editor of the Wall Street Journal. He was the originator of​ ""Dow Theory,"" which holds that the prices of transportation​ stocks, such as Heartland​ Express, can predict changes in the price of industrial​ stocks, such as ExxonMobil. a. An article in the Wall Street Journal refers to Dow Theory as the​ ""granddaddy of technical​ analysis."""b. Would an investor be able to earn an aboveaverage return on her stock investments by selling industrial stocks whenever she saw declines in transportation stocks and buying industrial stocks whenever she saw increases in transportation stocks? Briefly explain.
Rory is the CFO of McIlroy Golf Designs Inc. MGDI earned $13 million last year and maintains a 30% dividend payout ratio. The company has 2 million shares of common stock outstanding and a P/E ratio of 10. What is the price per share of MGDI's stock

Which economic system has no formal government ​

Answers

Market economic system

pproximately how much should be accumulated by the beginning of retirement to provide a $2,500 monthly check that will last for 25 years, during which time the fund will earn 6% interest with monthly compounding?

Answers

Answer:

$388,017.16

Explanation:

The amount that shall be accumulated at the beginning of retirement to provide a $2,500 for the period of 25 years shall be determined through the present value of annuity formula which is mentioned below:

Amount that should be accumulated=R[(1-(1+i)^-n)/i]

In the given question

R=monthly check that will be received=$2,500

n=number of months during which monthly checks will be  received=25*12=300

i=interest rate compounded monthly=6/12=0.50%

Amount that should be accumulated=2500[(1-(1+0.50%)^-300)/0.50%]

                                                            =$388,017.16

Refer to exhibit 5-5. If the airline charges a price that is between P1 and P2 for both aisle seats and middle seats, the result will beA. a surplus of middle seats and a shortage of aisle seats

B. a surplus of aisle seats and a shortage of middle seats

C. a shortage of middle seats and the equilibrium quantity of aisle seats

D. a shortage of aisle seats and the equilibrium quantity of middle seats

Answers

Answer:

The correct answer is option (D) A shortage of aisle seats and the     equilibrium quantity of middle seats

Explanation:

An aisle seat in a plane is one which is situated at the end of a row and is always adjacent to the aisle. It it mostly preferable to other seats in the plane.

The middle seat is situated at the middle position.

From the question, if the price for the aisle and middle seat are between P1 and P2, passengers will demand for the aisle seat first which will lead to a shortage in aisle seat. Only then will the middle seat be demanded for until it reaches equilibrium with the aisle set.

_____ occurs when a creditor obtains a court order that directs an employer to set aside a portion of an employee's wages to pay a debt owed to the creditor.

Answers

Answer:

Garnishment

Explanation:

Garnishment refers to an order in which a person directs a third party with respect to seize assets  i.e salary earned from employment or money in a bank account so that the unpaid debt amount could be settled out

In the given case, the same situation occurs so this is a case of garnishment and the same is to be considered

On January 1, Year 1, Chaco Company sold $300,000 of 10% twenty-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were issued for $359,378, priced to yield 8%. What is the amount of effective interest expense that Chaco will record for the six months ended June 30, Year 1

Answers

Answer:

The amount of effective interest expense that chaco will record in the first six months is $14,375

Explanation:

interest payment that will be first made is on June 30, Year 1. Therefore, the outstanding balance used in the calculation is the issue price.

The interest expense is calculated by these formula

Interest expense = Effective semiannual interest rate × Outstanding balance

Interest expense = (8% ÷ 2) × $359,378 = $14,375

So the interest expense is gotten as %14,375

Final answer:

The Chaco Company will record an effective interest expense of $14,375.12 for the six months ended June 30, Year 1.

Explanation:

The effective interest method is a technique used for discounting bonds. This method is used to calculate the amount of interest expense for a specific time period. In this case, we are finding the effective interest for the six months ended June 30, Year 1 on a bond issued by the Chaco Company.

The formula for the effective interest method is: Book value of the bond at the beginning of the period X Yield rate/Number of periods per year.

The book value of the bond at the beginning of the time period (January 1, Year 1) was $359,378. The yield was 8% and there are two periods in the year because the interest is paid semiannually.

So, the effective interest for the six months ended June 30, Year 1 = $359,378 * 8%/2 = $14,375.12.

Therefore, the amount of effective interest expense that Chaco will record for the six months ended June 30, Year 1 is $14,375.12.

Learn more about Effective Interest Expense here:

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MicroDecor produces stylish microwave ovens. Each unit sells for $620. During 20X7, the company produced 23,000 units, and sold 21,000 units. Beginning inventory contained a total of 3,200 units. Production and SG&A costs have been stable for many years. Assume the per unit costs in beginning and ending inventory are identical. Per unit cost information follows: Direct materials cost $160 Direct labor cost 110 Variable factory overhead 85 Variable SG&A 60 Annual fixed manufacturing overhead is $245,000. Annual fixed SG&A totals $1,500,000. (a) Determine the number of units in ending inventory, and calculate the total carrying cost using both variable and absorption costing. (b) Calculate 20X7 net income using variable costing. (c) Calculate 20X7 net income using absorption costing.

Answers

Answer:

beginning inventory = 3,200 units

units produced during the year = 23,000

units sold during the year = 21,000

ending inventory = 23,000 + 3,200 - 21,000 = 5,200 units

variable costs per unit:

  • direct labor = $110
  • direct materials = $160
  • factory overhead = $85
  • SG&A = $60
  • total = $415

fixed costs:

  • factory overhead = $245,000
  • SG&A = $1,500,000
  • total = $1,745,000
  • per unit = $1,745,000 / 23,000 = $75.87 per unit

A) Variable costing calculates COGS using only variable costs since fixed costs are considered period costs and are not carried over.

carrying value of initial inventory:

  • using variable costing = $415 x 3,200 units = $1,328,000
  • using absorption costing = ($415 + $75.87) x 3,200 = $1,570,784

carrying value of ending inventory:

using variable costing = $415 x 5,200 units = $2,158,000

using absorption costing = ($415 + $75.87) x 5,200 = $2,552,524

B) net profit using variable costing:

total revenue = 21,000 x $620 = $13,020,000

- COGS = 21,000 x $415 = $8,715,000

gross contribution margin = $4,305,000

- total fixed costs = $1,745,000

net income = $2,560,000

C) net profit using absorption costing:

first we need to determine COGS = carrying value beginning inventory + (17,800 x variable manufacturing costs per unit) + (17,800 x fixed manufacturing costs per unit) = $1,570,784 + (17,800 x $355) + (17,800 x $10.6522) = $1,570,784 + $6,319,000 + $189,609 = $8,079,393

total revenue = $13,020,000

- COGS = $8,079,393

gross margin = $4,940,607

- variable SG&A = 17,800 x $60 = $1,068,000

- fixed SG&A = 17,800 x ($1,500,000 / 23,000) = $1,160,870

net income = $2,711,737