For #1 = The owner of The Rutles Restaurant is concerned about changing costs and the inability
Question:
For #1 = The owner of The Rutles Restaurant is concerned about changing costs and the inability to increase meal prices. During 2020, the average selling price for a meal served was $12.75; the average variable costs were $7.25, and the average monthly fixed costs totaled $20,000.
1b. Calculate the Break-even Point for December 2020 in revenue dollars:
1c. Calculate the number of meals to sell in December 2020 to achieve a profit of $5000:
1d. In December 2020, how many meals on average, per night are needed to break-even
For #2 = In 2021, the average monthly fixed costs are expected to increase by $2,000 above 2020. In addition, consider the following January 2021 data:
Cost of Food and Bev = $11,000 | Cost of Hourly Labor = $9,000 | Covers = 2550 1a. Calculate the Break-even Point for December 2020 in # of meals sold:
In 2021, the average monthly fixed costs are expected to increase by $2,000 above 2020. In addition, consider the following January 2021 data:
Cost of Food and Bev = $11,000 | Cost of Hourly Labor = $9,000 | Covers = 2550
What is the Variable Cost per meal in January 2021
2b. Given the expected cost increases for 2021, calculate the Break-even Point for January
2019 in number of meals sold:
2c. Given the expected cost increases for 2021, calculate the Break-even Point for January 2019 in revenue dollars:
2d. Calculate the number of meals to sell in January of 2021 to achieve an income of $5000:
Required:
3. You have to consider whether your restaurant should stay open for an extra hour under the following conditions: The average check in your restaurant is $19, your f & b cost percentage is 30%, your fixed cost for the hour is $120.
How many covers would you need to serve to break even?
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins