Explain is short the production process of the restaurant

Assignment Help Managerial Accounting

Reference no: EM132664701

You are the manager of a fast food restaurant selling burgers since 2015. Information of your business in 2018 are as follows:

Selling price was 210 Taka
Average number of burgers sold each month was 390.

Annual sales growth was 15%
Selling price increases by 25% every year

Monthly average selling and administration cost of the restaurant was:

Rent = 30,000 Taka per month
Utility = 18,000 Taka per month
Depreciation = 3,000 Taka per month
Salary of waiters = 10,000 Taka per month

During a normal situation, the following growth has been observed:

Raw material cost increases by 8% every year
Labor cost increases by 5% every year
MOH cost increases by 12% every year
Selling and administration cost increases by 2% every year

Required:

Problem 1: Explain is short the production process of the restaurant to make a burger. (You must assume and explain what kind of raw materials might be needed to make a burger, what can be regarded as direct labor cost in relation to making a burger, what can be the MOH costs in relation to making a burger).

Reference no: EM132664701

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