What variable rate is the owner projecting

Assignment Help Accounting Basics
Reference no: EM132608147

Question -

(a) The owner of Brad 1 Restaurant estimates that fixed costs for the coming year will be RM860, 000. Based on his investment in the business, he wants a profit of RM980, 000 for the year. Experience has shown that the average check is RM20.90.

(i) If total variable cost is RM900, 000, what level of Ringgit (RM) sales will be required to earn the target restaurant profit?

(ii) Given total variable costs and total sales figures calculated in Question 1(i), what variable rate is the owner projecting?

(iii) Given the variable rate calculated in Question 2(ii), determine the contribution rate. Describe the two limitations of CVP analysis.

b) The following information is from the records of Brad 2 Restaurant:

Sales RM976, 000

Variable cost RM366, 000

Fixed cost RM300, 000

Assume that sales volume equals to 25,000 covers:

(i) Calculate profit.

(ii) Calculate average Ringgit (RM) sales.

(c) Describe the two limitations of CVP analysis.

Reference no: EM132608147

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  On january 1 2012 the accounts receivable and the allowance

on january 1 2012 the accounts receivable and the allowance for doubtful accounts carried balances of 30000 and 500

  Indicate a preference for pepsi

Each student was asked to indicate a preference for PEPSI versus other soft drinks, with the following results: 44 of the 125 at MIT indicate preference for PEPSI versus 26 at GA Tech. At the 5% level, determine ..

  What would be the mix of stocks chosen by you

Management has required a 12% Return on Investments for 2017. What would be the mix of stocks chosen by you

  Kendra gorman is the owner and operator of mega concepts a

kendra gorman is the owner and operator of mega concepts a motivational consultingbusiness. at the end of its

  What are some of the benefits organizations seek to achieve

What are some of the benefits organizations seek to achieve through using information systems?

  Prepare campbell soup company journal entry

For 2010, Campbell Soup Company had pension expense of $68 million, Prepare Campbell Soup Company's journal entry to record pension expense and funding

  Name and briefly explain the five components of cosos

1. in two to three paragraphs describe the sarbanes-oxley act and why it is important to the accounting profession.2.

  What are the six safety certificates the faa issues

What are the six safety certificates the FAA issues? What are the four components of the Air Traffic Control system? What is CRM and what is it designed to do?

  Assumption of no tax consequences

The machine will have a 5-year life, at which time the terminal disposal value is expected to be $20,000. Upper Darby Park Department is assuming no tax consequences. If Upper Darby Park Department has a required rate of return of 10%, which of th..

  Provide the adjusting entries related to bad debt expense

On December 31st 2020, Mercy Inc. had $200,000 of accounts receivables outstanding. Provide the adjusting entries related to bad debt expense

  What kinds of risks and liabilities are facing

What kinds of risks and liabilities are you facing? How could address these risks by becoming incorporated? Discuss advantages corporate business organization.

  In year 1 joe josephs cpa reviewed lander companys

in year 1 joe josephs cpa reviewed lander companys financial statements. however in year 2 the lander company hired

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd