Bubbas steakhouse has budgeted the following costs for a

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1.Three costs incurred by Pitt Company are summarized below:

                                 1,000 units                   2,000 units

Cost A                       $10,000                         $15,000

Cost B                       $21,000                         $21,000

Cost C                       $16,000                         $32,000

Which of these costs are variable?


A, B, and C


A and B


A only


C only

2.Bubba's Steakhouse has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: Materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,540; depreciation, $790; and other fixed costs, $400. Each steak dinner sells for $12.30 each. How much would Shula's profit increase if 10 more dinners were sold?

Reference no: EM13570456

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