KC , a fast food restaurant, serves fried chicken, fried fish, and French fries. The managers have
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Question:
KC a fastfood restaurant, serves fried chicken, fried fish, and French fries. The managers have estimated the costs of a batch of fried chicken for KCs allyoucaneat Friday Fried Fiesta. Each batch must be pieces. The chicken is precut by the chain headquarters and sent to the stores in piece bags. Each bag costs $ Preparing a batch of pieces of chicken with KCs special coating takes one employee two hours. The current wage rate is $ per hour. Another cost driver is the cost of putting fresh oil into the fryers. New oil, costing $ is used for each batch.
Round answers to two decimal places, when applicable.
a Determine the cost of preparing one batch of pieces.
b If management projects that it will sell pieces of fried chicken, determine the total cost and the cost per piece.
Total cost:
Unit cost:
c If management estimates the sales to be pieces, determine the total costs
d How much will the batch costs increase if the government raises the minimum wage to $ per hour?
e If management decided to reduce the number of pieces in a batch to determine the cost of preparing pieces. Assume that the batch would take half as long to prepare, and management wants to replace the oil after pieces are cooked.
Related Book For
Statistics For Managers Using Microsoft Excel
ISBN: 9780133130805
7th Edition
Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat
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