What are the correct answers to question 1 and 2? Z Company operates a snack bar infront of M University. 80% of its regularclients/customers are students from MUniversity. Due to the COVID-19pandemic, schools in the country weretemporarily closed and classroomdiscussions were shifted to onlinelearning modality. As a result, ZCompany's snack bar decreased itssales.Z Company is planning to temporarilyshutdown the snack bar.Each unit sales is a combo meal whichcosts P50.00 per meal, while thevariable cost amounts to P25.00 permeal.Under a normal conditions, the snackbar would sell an average of 10,000meals per month and incurs thefollowing fixed cost for the month:RentP10,000.00Allocated cost of utilities3,000.00Salary of sales clerk.11,000.00Janitor's salarynormal condition P33,000.00O9,000.00Total monthly fixed cost underZ Company noted that if they shut downthe snack bar, the allocated cost ofutilities will be reduced to P1,500.00,salaries of the clerk and the janitor willbe eliminated during the shut downperiod. All other fixed costs would beincurred despite discontinuance of thesnack bar.OQuestion: What would be the effectshould the company opted to shutdownthe snack bar?The company will incur fixed cost ofP11,500.00 despite the temporary shutdownof the snack bar.The company will be able to save P11,500.00of fixed cost.The company will be able to increase its salesby P11,500.00O None of the aboveSame information in the precedingproblem above, compute for the shutdown point.P860.00O 860 unitsOP100,000.00100,000.00 units

The shut down point is the point at which the company would be better off shutting down the…

Z Company operates a snack bar in front of M University. 80% of its regular clients/customers are students from M University. Due to the COVID-19 pandemic, schools in the country were temporarily closed and classroom discussions were shifted to online learning modality. As a result, Z Company's snack bar decreased its sales. Z Company is planning to temporarily shutdown the snack bar. Each unit sales is a combo meal which costs P50.00 per meal, while the variable cost amounts to P25.00 per meal. Under a normal conditions the spack

Z Company operates a snack bar in front of M University. 80% of its regular clients/customers are students from M University. Due to the COVID-19 pandemic, schools in the country were temporarily closed and classroom discussions were shifted to online learning modality. As a result, Z Company's snack bar decreased its sales. Z Company is planning to temporarily shutdown the snack bar. Each unit sales is a combo meal which costs P50.00 per meal, while the variable cost amounts to P25.00 per meal. Under a normal conditions the spack

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter2: Business Ethics And Social Responsibility

Section: Chapter Questions

Problem 1QAP

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