Calculate cost for each unit, Cost Accounting

Assignment Help:

Dropping a segment - George's Grill analyzes profitability of three operating units: restaurant, bar, and billiards room. Revenues, variable costs, and attributable fixed costs (which can be avoided if the unit is eliminated) for each unit are as follows:
__________________________Restaurant Bar Billiards Rm
Revenue $320,000 $150,000 $40,000
Variable costs 120,000 35,000 10,000
Attributable fixed costs 80,000 25,000 15,000
George the owner, is considering converting the billiards area into an expanded bar area.
a)Ignoring remodeling costs, by how much will the bar segment margin have to increase for the grill's income to be at least as high as it is now?
b)What other considerations will George want to consider before making the decision to eliminate the billiards unit to expand the bar area?


Related Discussions:- Calculate cost for each unit

Contract costing terminology, Contract Costing Terminology Principles ...

Contract Costing Terminology Principles of profit income recognition in contracts The Notional Profit This is a component of two items as: a) Profit taken   = Noti

Calculate the inventory turnover ratio, The following information is availa...

The following information is available for the automotive division of Ford Motor Company for 2009.  The company uses the LIFO inventory method.

.., process costing new practices

process costing new practices

Job costing, Job Costing This is a costing method that is applied whe...

Job Costing This is a costing method that is applied when a job or cost unit is relatively of small size, is undertaken to fit the customer's specifications and is of compara

Job costing, the features and scopes of job costing

the features and scopes of job costing

What is the original cost of the auto?, I'm having a hard time with this, c...

I'm having a hard time with this, can you please help? I know the dates are imparative also in finding the solution. Stevens purchased an auto on Jan 1, 2001. On December 31, 2003

labour cost as the focus, Using  labour  cost  as  the  focus,  discus...

Using  labour  cost  as  the  focus,  discuss  the  differences  in  the measurement  of  labour efficiency / effectiveness where (i)  total quality management techniques and (ii)

Standard costing and variance analysis using kaizen costing, Discuss how SD...

Discuss how SD can use standard costing and variance analysis to prepare meaningful reports when using Kaizen Costing. By the use of standard costing and variance analysis, fr

Computation of overhead recovery rate, Compute the rate to be used in each ...

Compute the rate to be used in each department for applying overhead in both departments Budegeted Cost sheet   Amount in $

Write Your Message!

Captcha
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