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Nature’s Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef’s salad selling for $7. Daily fixed cost are $1,200 and variable costs are $4 per meal. With a capacity of 800 meals per day, the restaurant serves an average of 750 meals each day.
Required
Determine the current average cost per meal
A busload of 30 Girl Scouts stops on its way home from the San Bernardino National Forest. The leader offers to bring them in if the scouts can all be served a meal for total of $150. The owner refuses, saying he would lose $.60 per meal if he accepted this offer. How do you think the owner arrived at the $.60 figure? Comment on the owner’s reasoning.
A local businessman on a break overhears the conversation with the leader and offers the owner a one-year contract to feed 300 of the businessman’s employees one meal each day at a special price of $4.50 per meal. Should the restaurant owner accept this offer? Why or why not?
Brumlow Company has a contribution margin ratio of 25%. The company is considering a proposal that will increase sales by $100,000. What increase in profit can be expected assuming total fixed costs increase by $20,000?
multiple choice questions related to transaction analysis.choose the correct answer from the given option.1.nbspjoes
Calculate the cost of inventory reported on the balance sheet. the total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000, $8,000 has been sold FOB destination and is awaiting pickup by the carrier.
Imagine that the society has two political parties, called the Hawks (who want a strong military) and the Doves (who want a smaller military). Show a point on your production possibilities frontier that the Hawks might choose and a point that the ..
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Prepare Takemoto's November 1, 2010, entry; the December 31, 2010, annual adjusting entry; and the February 1, 2011, entry.
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Access to the computer system is password-protected and task-specific, which means that the computer system will not allow the employee to approve a transaction or the supervisor to record a transaction. Identify the principles of internal control in..
A company reports the following operation results for sales for 1 month: sales $310,000 (units 5000); variable cost $210,000; and fixed cost $75,000. If they take 3 different courses of action which will produce the highest income? Compute the net in..
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