Question: PLEASE SOLVE THE FOLLOWING PROBLEM IN EXCEL, SHOW SCREEN SHOTS AND SHORT EXPLANATION OF YOUR SOLUTION. IN EXCEL PLEASE Fernandos is a small sandwich shop

PLEASE SOLVE THE FOLLOWING PROBLEM IN EXCEL, SHOW SCREEN SHOTS AND SHORT EXPLANATION OF YOUR SOLUTION. IN EXCEL PLEASE

Fernandos is a small sandwich shop just off the State University campus. Customers enter off the street into a small counter area to order one of ten varieties of sandwiches and a soft drink. All orders are must be taken out because there is no place for dining inside. The owner of Fernandos is Luis Azaria, son of Fernando Azaria who founded the shop. Luis is attempting to construct a series of budgets. He has accumulated the following information: The average sandwich sells for $4.50. It consists of 1 roll, 4 ounces of meat, 2 ounces of cheese, 0.05 head of lettuce, 0.25 of a tomato, and 1 ounce of secret sauce. Each customer usually orders one soft drink (average price $1.50) consisting of a cup and 12 ounces of soda. Use of paper supplies (napkins, bag, sandwich wrap, cups) averages $1,650 per month. Fernandos is open for two 4-hour shifts. The noon shift on Monday through Friday requires two workers earning $10 per hour each. The evening shift is only worked on Friday, Saturday and Sunday nights. The two evening shift employees also earn $10 per hour each. There are 4.3 weeks in a month. Rent is $575 per month. Other monthly cash expenses average $1,800. Food costs are: Meat $7.00/lb Cheese $6.00/lb Rolls $28.80/gross (a gross is 12 dozen) Lettuce $12.00/box (a box contains 24 heads) Tomatoes $4.00/box (a box contains 20 tomatoes) Secret Sauce $6.40/gallon Soda $2.56/gallon (syrup and carbonated water) In a normal month when school is in session, Fernandos sells 5,000 sandwiches and 5,000 sodas----use one quantity field (not two), assuming each sandwich purchase always comes with a soda. In October, State U holds its homecoming celebration. Therefore, Luis figured that if he added a noon shift on Saturday and Sunday of homecoming weekend, October sales would be 30% higher than normal. To advertise his noon shifts during homecoming weekend, Luis bought cups printed with the State U homecoming schedule. This added $200 to the paper costs for the month of October. You are a consultant for Fernandos. Should Fernandos open for the extra shifts in October? Prepare a budget in contribution margin format income statement (if youre not familiar with this format, Google it) for the normal sales and the projected October sales. You must detail out the cost of each sandwich and soda. Use Solver to calculate the break-even combo quantity for a normal month and for October. Include an Answer Report for both the normal month and the month of October. Write a page memo explaining your findings and give a recommendation to the owner whether he should open for additional shifts in October.

- Calculate the break-even point if Fernandos opened for lunch every weekend in October. Produce an additional Answer Report showing your solution. The $200 paper cost is in play for the extra credit piece.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!