Calculate the profit for each alternative

Assignment Help Accounting Basics

Reference no: EM131974020

Problem

Sam's Sushi serves only a fixed-price lunch. The price of $9 and the variable cost of $4 per meal remain constant regardless of volume. Sam can increase lunch volume by opening and staffing additional check-out lanes. Sam has three choices:

	Monthly Volume Range (Number of Meals)	Total Fixed Costs
1 Lane	0-5,000	$	26,000
2 Lanes	5,001-8,000		31,000
3 Lanes	8,001-10,000		36,600

Required:

a. Calculate the break-even point(s).
b-1. Calculate the profit (or loss) for each alternative, assuming Sam can sell all the meals he can serve.
b-2. Should Sam operate at one, two, or three lanes?

Reference no: EM131974020

Questions Cloud

Difference between the pv of costs and the amount : The difference between the PV of costs and the amount that would be in the savings account must be made up by the father's deposits.

Determine initial valuation of each asset samtech acquired : Determine the initial valuation of each asset Samtech acquired in these transactions. Assets Initial Evaluation Land Building Land Improvements.

Calculate the incremental income after taxes : Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $216,000 in additional credit sales

Appropriate for a phone number field : Of the data type Text, or Yes/No, which would be the most appropriate for a phone number field that needs to store data in the format (123)555-7890?

Calculate the profit for each alternative : Calculate the profit (or loss) for each alternative, assuming Sam can sell all the meals he can serve. Should Sam operate at one, two, or three lanes?

Illustrates the proper logic : For individuals 21 or older, display the message "you are 21 or older." Be sure to test your flowchart to make sure it illustrates the proper logic.

Analytical procedures as risk assessment procedures : PACC6002 Auditing and Assurance Services - Identify and briefly explain two ways you could use analytical procedures as risk assessment procedures

Program internal documentation : List at least three types of information that should be included in a program's internal documentation (comments).

Compute the depreciation for the current fiscal year : Compute the depreciation for the current fiscal year and for the following fiscal year by the straight-line method.

User Account

All Pages