Question

Annie s Homenade has been invited to submit a bid to cater a Memorial Day picnic with $60$ secvings of four fluvors for a total of $240$ pre$-$packaged servings of ice crearn. Annie s$\text{'}$ average ingredient and packaging costs $($including cup, lid spoon. $-$and stickers$)$ are $$1\mathrm{.}50$ per serying it would catect the enent with one manager, whose is paid an annual salary of $$40,000($or an average of $$20\mathrm{.}00$ per hove$),$ and two additional employees who are paid $$5,00$ per hour. Thin wedding party expects Annies staff to remain on$-$site for two hours to serve ice$-$cream. The round$-$trip drive fime to the event plus the tent setup and breakdown time is $1\mathrm{.}50$ hours. The wedding is $40$ miles round trip and the company plckup trucks diesel fuel, diesel cahaust fluid, and oll expenses are $$0\mathrm{.}75$ par mile. The manager catering the Wedding would also spend $3\mathrm{.}5$ hours manufacturing the ice. crearn for the picnio and portioning it into six$-$ounce paper cups. He would be assisted by one employee for two hours who would apply a branded flowor sticker and an ingredient label! before securing one lid on each cup of ice cream. The company can fulfill the ordet with its existing capacity and has gathered the following information with respect to its annual fixed overherad In$-$store Manufacturing overhead $($e$.$g$.,$ equipment depreciation, fent, utilities, insurance, etc.$)\_..$ $$48,000$ Number of servings produced per year $($including mobile serving$5)80,000$ Pickup truck depreciation. insurance, registration, and vehicle tax $ $$10,000$ Mobile sales equipment depreciation $($e$.$g$.,$ frailer, mobile freezer and serving tent$).$ $$3\mathrm{.}000$ Number of mobile servings sold per year, T$6,250$ The total bid price isplits into twa piecesgross revenue and state and local sales tax $(7\%).$ Then, $5\%$ of the gross revenue will be pyid to Annie's Homemade's corporate headquarters as a royalty fee. Since the picnic sponsor plans to pay with a credit card, $37$ of the fotal bid price will be paid to the credit card company for processing the payment.

Assume.Annie bids $$1,080$ for the job. If it wins the bid, how much of the total bid receipts

a$)$ Wilt be recorded as gross sales revenue

b$)$ Will be paid to governing authonties as sales tax?

c$)$ Will be paid to Annie's Homemade Corpotate Headquarters

d$)$ Will be disbursed to the company that processes the credit card payment?

e$)$ Wall be recorded as net sales revenue?