Answer:
a.
Average cost per meal = Variable cost per meal + Fixed cost allocated to one meal sold = $4 + Total fixed cost/ Number of meals sold per day = $4 + 1,200/750 = $5.60.
b.
Price per one meal as per the leader of the Scout = 150/30 = $5
As the selling price is $0.60 lower than the average cost per meal ($5-$5.60), the owner has come up with the loss of $0.60 per meal served under the Scout leader's suggestion.
However, his calculation is not reasonable, because among the $5.60 cost per meal, there is a factor of allocated fixed cost equals to $1.6 per meal which will incurred regardless of the suggestion being accepted or not.
Given his restaurant does not run at full capacity, his profit per one meal from accepting the offer should be calculated as Price per one meal as per Scout leader offer - Variable cost per one meal = $5 - $4 = $1.
Explanation:
Answer:
High demand
Low supply
High prices
Explanation:
The demand and supply of products, goods and services is heavily dependent on several factors ranging from economic, health and social factors. Disease and viral outbreaks have devastating effects on the market forces of demand and supply which in most cases will impact the market negatively with characteristically high prices and scarcity of products. The mouth and hoof outbreak in Europe was one which impacted the economy including farmers, leather and hides workers and all whose businesses and sustainability depends on cattles and its products. Due to the contagious nature of the disease and the ease at which it could spread if curtailment isn't effected on time, millions of cattles were slaughtered on sighting the symptoms and it's products including skins are burnt leading to losses in billions on the path of cattle rearers, shortage of lather, hides and skins, restriction in international product trade in other to avoid its spread to other parts of the world. These resulted in low supply and high demand of cattles and its products including leather goods meaning High prices for little available.
Answer:
The amounts to be recorded for the building and for Forman's Capital account are $80,000 and $60,000 respectively
Explanation:
According to the accounting principles, the fixed assets should be recorded at cost or market value whichever is lower
So, in the question, it is mentioned that the building has a market value of $80,000 so by $80,000 the building is recorded.
And, for the Forman's Capital account, the $60,000 should be recorded because we have to deduct the $20,000 building mortgage from the market value of the building so that the accurate value can be come.
Answer:
Total unitary manufacturing cost= $32
Explanation:
Giving the following information:
Direct materials $ 13
Direct labor $ 5
Variable manufacturing overhead $5
Fixed manufacturing overhead per year $90,000
Units produced= 10,000 units.
<u>The absorption costing method includes all costs related to production, both fixed and variable. </u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary fixed overhead= 90,000/10,000= $9
Total unitary manufacturing cost= 13 + 5 + 5 + 9
Total unitary manufacturing cost= $32
Answer: the above statement is true to some extent. Most of the businesses today are either cooperates or limited liability companies. This is because, many businesses try to remove the personal risk associated when running a business venture. Hence, they convert it into a limited liability business so the risk is only limited to the amount they invest.
However, there are still some business that are running on a smaller scale and have unlimited liability.
