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

Calculate the variable overhead, Questions 8-10 rely on the following data....

Questions 8-10 rely on the following data. FrontGrade Systems allocates manufacturing over- head based on machine hours. Each connector should require 11 machine hours. According t

Cost behaviour, Cost Behaviour "Profitability is only around the corner...

Cost Behaviour "Profitability is only around the corner." This is a general expression in the business world; you might have heard or said this yourself only. But, the reality

What are the total units to be accounted for on the cost of, The Butchering...

The Butchering Department of the Santa Fe Meat Packing Corporation (a process costing corporation, FIFO costing) had 1,500 units, 1/3 completed at the beginning of the period and 1

Standards on motivation, ADescribe the impact of different types of standar...

ADescribe the impact of different types of standards on motivations, and specifically, the likely effect on motivation of adopting the labor standard recommended for Geeta & Compan

Reasons for overhead variances useful for control reasons, Reasons for Over...

Reasons for Overhead Variances Useful for Control Reasons Overhead variances are essentially a book balancing exercising giving an arithmetic reconciliation between the actual

Distinguish between the products of different producers, The text states th...

The text states that four conditions are necessary for the existence of a perfectly competitive market. Discuss in your own words each one. a)   Numerous participants: Roughly

Calculate the current stock price, The Bloomington Electric Company operate...

The Bloomington Electric Company operates in a stable industry and therefore has predictable dividend growth of 8% per year. The most recent annual dividend was paid yesterday in t

Critical thinking about cost flow, Critical Thinking about Cost Flow It...

Critical Thinking about Cost Flow It is simple to overlook an important aspect of cost flow within a manufacturing operation. If you see that have taken note of an important co

Determine the current profits, Two firms compete in a homogenous product ma...

Two firms compete in a homogenous product market where the inverse demand function is P = 10 - 2Q (quantity is measured in millions). Firm 1 has been in business for 1 year, while

Credit sales method, What are the journal entries to recognize each of the ...

What are the journal entries to recognize each of the below events. a.   The firm records bad debt expense of 5% of credit sales, which were $300.  The firm uses the Percentage

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