Exercise 2-48 (Static) Cost Behavior and Forecasting (LO 2-5)

Sophia's Restaurant served 5,000 meals last quarter. Sophia recorded the following costs with those meals.

Variable costs:
Ingredients used	$	14,000
Direct labor		10,500
Indirect materials and supplies		5,300
Utilities		1,700
Fixed costs:
Managers' salaries		22,000
Rent		18,000
Depreciation on equipment (straight-line, time basis)		2,000
Other fixed costs		3,000

Total variable costs
Total fixed costs
Total costs
Unit costs