Youre the manager at a restaurant and you have decided to offer a new entre for dinner.

You’re the manager at a restaurant and you have decided to offer a new entrée for dinner. You have decided to make spaghetti for dinner. Below are the ingredients at store price that you need to make a spaghetti dinner, also it has been into variable quantity cost.

Supplies at full store price.

Spaghetti: 1 box of spaghetti uncooked, 1-1/2 pounds ground Italian sausage,1 cup onion, chopped,3/4 cup green bell pepper, chopped,2 (26-ounce) jars pasta sauce, any flavor,1/2 cup grated Parmesan cheese.

box of spaghetti                               $1.49 per box

ground Italian sausage                $3.99 per lb.

Onion                                                  $2.49 per

green bell pepper                          $.79 each

pasta sauce                                       $2.50 per jar

Parmesan cheese                          $4.49 per 5oz

Variable Cost                  Quantity Needed X   Regular price      = Needed Price

Box of spaghetti 1box                                      $1.49                                     $1.49                        

Ground Italian sausage                  1.5lb                                      $3.99                                     $5.985

Onion 1                                             $2.49                                     $2.49                   

Green bell pepper                            .75                                          $.79                                       $.593                   

Pasta sauce 2 Jars                                     $2.50                                     $5.00

Parmesan cheese .5                                            $4.49                                     $2.245

Total variable cost                                                                                                                        17.8025

Require

1 Calculate the cost of ingredients for your batches of food and the cost of a single unit.

2Make any adjustments you feel necessary to make your product better or more cost-effective. Document all changes. Additional Costs to add to your product: You rent a kitchen/shop for $3,500 a month for cookies/brownies/cupcakes, $3,750 for bread/muffins and $4,000 for pizza. Electricity is $.75 an hour for electricity (everything except pizza) 1.25 for pizza whenever you are working, plus a $35 a month base fee. Can make your product 40 hours a week with your single worker making $12 an hour. Packaging materials cost $.10 a batch of cookies (20)/brownies (12), .15 per loaf of bread/muffins (6)/cupcakes (12) and .30 for each pizza. Other fixed costs (lease and maintenance of ovens) are $450 a month for cookies/brownies/cupcakes, $500 for bread/muffins and $550 for pizza. Selling and admin costs (per month) $550 for cookies/brownies/cupcakes, $700 for bread/muffins and $800 for pizza

3 Determine how long it will take for each batch of cookies, bread, and pizza from start to finish. Next, divide this into your available hours to determine your capacity in batches of cookies/bread/pizza.

4Price (needs to be realistic) your product to include a profit, you can add a worker to increase volume, however, you cannot expand beyond three

5 What is your breakeven?

6 What is your breakeven if you pay yourself?

7 What is your breakeven if ingredients cost increases 15%?

8 Need a flexible budget for 75 batches below and above breakeven

9 Choose an allocation base and use the single overhead rate to determine the cost of your product on a batch/per loaf/per pizza

10 Need a budget for the year assume you can sell all the product you make

11 Need a budgeted cash flow for the year, taking loans if necessary

Answer rating: 100% (QA)

1 The cost of ingredients for a batch of spaghetti and the cost of a single unit would be as follows Batch Cost Spaghetti 1 box of spaghetti uncooked 149 Ground Italian sausage 5985 Onion 249 Green be... View the full answer