Question

Molly’s Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs eight people; one is a manager paid a salary plus a bonus equal to 3 percent of sales. Other employees, two cooks, one dishwasher, and four waitresses, are paid salaries. Each manager is budgeted $3,000 per month for advertising costs.

Required
Classify each of the following costs incurred by Molly’s Restaurant as fixed, variable, or mixed:
a. Manager’s compensation relative to the number of customers.
b. Waitresses’ salaries relative to the number of restaurants.
c. Advertising costs relative to the number of customers for a particular restaurant.
d. Rental costs relative to the number of restaurants.
e. Cooks’ salaries at a particular location relative to the number of customers.
f. Cost of supplies (cups, plates, spoons, etc.) relative to the number of customers.



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  • CreatedFebruary 07, 2014
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