The producer is the person who makes the product therefore the answer would be A.
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:
A) Allowance method of accounting bad debts
Explanation:
Based on the allowance method, the bad debts should be calculated on either credit sales i.e. income statement method or receivable aging method i.e. balance sheet method. Also, the account receivable should be recognized at net realizable value
Therefore the allowance method of accounting bad debts is an answer
Unofficial relationships in organizations can be referred to as ad hoc structures.
Answer:
$0.5 per box
Explanation:
From CVP analysis,
The break-even point = Fixed cost/contribution margin per unit
For Fiona
Break-even point =$120 boxes, fixed costs = $300
Contribution margin per init = selling price - variable costs
selling price =$5: variable costs, cookies cost $2 per box, and chocolate chips
therefore
120 = $300/ Contribution margin per unit
$120 = $300/ CM
CM = $300/$120
CM = $2.5
Contribution margin = selling price - variable costs
$2.5 = $5- cookies - chocolate chips
$2.5 =$5 - $2- chocolate chips
$2.5 -$3-chocolate
chocolate chips = $3-$2.5
=$0.5 per box
