Java Joe’s operates a chain of coffee shops. The company pays rent of $12,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The manager of each shop is paid a salary of $2,000 per month, and all other employees are paid on an hourly basis. Relative to the number of customers for a shop, the cost of rent is which kind of cost? cFixed cost Variable cost Mixed cost Relevant cost
Q: Coffee works Limited manufactures coffee machines for domestic use. The management of the company is…
A: Computation of the marginal cost per coffee machine and absorption cost per coffee machine and…
Q: Al Bawadir manufacturing LLC, who is a leading bottle manufacturing company in Muscat. Mr.Saud, who…
A: Total cost-:The Total Cost is the substantial cost spent in the generation of a provided level of…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The difference between being an expense's real and expected (or intended) amount is referred to as…
Q: Native Wood Products Ltd sells hand-made coffee tables. The shop owner has divided sales into two…
A: Breakeven sales revenue is that level of sales at which business is only recovering its fixed costs…
Q: company produces a gear that is commonly used by several lawnmower manufacturing companies. The base…
A: Breakeven sales = Fixed cost/ contribution Contribution = Sales price - Variable cost = 10.4 - 1.95…
Q: Chaffee Corporation staffs a helpline to answer questions from customers. The costs of operating the…
A: Variable costs are those costs which changes directly with change in level of activity.
Q: Adam Granger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He…
A: Margin of Safety In a simple term margin of safety which describes as the difference between the…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The budget is prepared for estimating the revenue and expenditure. It is used for planning and…
Q: Tony’s is a Pizzeria located near a local university. The restaurant not only sells two types of…
A: Solution: a) Cost Volume Profit (CVP) Analysis describes how changes in costs, expenses and Volume…
Q: The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that…
A: The Break-even point is that level of sales, where the total cost i.e variable and fixed both are…
Q: ou are the Chief Financial Officer of Max Gifts Company. A small company that sells Italian…
A: Contribution margin per unit = Contribution margin/ Number of units sold…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The revenue and spending variance is the difference between actual results and flexible budget data…
Q: Gypsy Joe’s operates a chain of coffee shops. The company pays rent of $10,000 per year for each…
A: Rent and salary of manager is a Fixed cost, since they dont change with change in production volume…
Q: Camille Company operates a chain of retail paint stores. Although the paint is sold under the…
A: Contribution margin per gallon =Selling price per gallon -Variable cost per gallon=P 100 -P 70=P…
Q: Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 27,000 rolls annually…
A: Please find the answer to the above question below:
Q: . If Reuben accepts the offer, what will the effect on profit be?
A: Presently the total cost to make the rolls = 0.24 + 0.39 + 0.15 + 0.20 = $ 0.98 Potential seller is…
Q: Owen Conner works part-time packaging software for a local distribution company in Indiana. The…
A: Fixed Cost = 10,000 Direct labor Cost = 3.50 per package Direct Material Cost = 4.50 per package…
Q: Marwick’s Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail…
A: 1. Under Traditional method, the cost of goods sold is deducted from sales revenue to arrive at the…
Q: Gwen is the managerial accountant in charge of Company A, which sells water bottles. She previously…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Cost…
Q: Lavage Rapide is a Canadian company that owHs dnu upe provides estimates concerning the company's…
A: Solution: A Planning budget forecasts revenue and expenses over a specific period but remains…
Q: 1. Compute the break-even point in meals. 2. Compute the break-even volume in dollars. 3. Compute…
A: 1. Compute the break-even point in meals. Break-even point in meals = Fixed costs / Contribution…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Activity Variance = ( Actual Units - Budgeted Units ) * Price Net Operating Income = Revenue -…
Q: You are the Chief Financial Officer of Max Gifts Company. A small company that sells Italian…
A:
Q: Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per…
A: 1. Prepare a traditional format income statement for August as shown below:
Q: Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of…
A: Income statement as per traditional method is the one that determines the gross profit and net…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A:
Q: Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of…
A: The income statement indicates the earning of the particular business in an accounting period. It…
Q: Lavage Rapide is a Canadian company that owns and operates a large automat provides estimates…
A: Answer) Lavage Rapide Planning Budget For the Month Ended August 31 Number of cars…
Q: CVP, alternative cost structures. Classical Glasses operates a kiosk at the local mall, selling…
A: 1Compute units of sunglasses to be sold to reach break-even point.
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Revenue = Budgeted car washed x average price per car washed = 8000 x $6.10 = $48800
Q: Calculate the company's revenue and spending variances for August. (Indicate the effect of each…
A: In Standard Costing, standard/budgeted data for a particulars activity is used to be set and then we…
Q: Flora's Flats produces comfortable and portable women's shoes designed to be worn as a second pair…
A:
Q: SWA company is trying find costs of its products. Which of the following statements is true? A cost…
A: To manufacture a product there are different kind of costs are incurred by the company for example…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Given, Number of car wash = 9,000 Total cost = Fixed cost + (variable cost per car wash*Number of…
Q: An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual…
A: Given information : Annual demand (D) : 1,200 batteries Item cost (S) : $20 Holding cost (H) : $8.4…
Q: Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 33,000 rolls annually…
A: Pofit/loss on buying the rolls=Total cost of making-Total cost of buying
Q: Rent = $1,100 Utilities = $265 Material and assembly = $12.65/unit Monthly labor = $625 If…
A: Contribution = Selling Price - Variable Cost
Q: Schneider Logistics Company has built a new warehouse in Columbus, Ohio, to facilitate the…
A: Computation: One team in-house:…
Q: Marwik Pianos. Inc purchases pianos from a large manufacturer for an average cost of $1,482 per…
A: Operating profit: It refers to the profit earned by business from its operations after deducting…
Q: Suppose that a delivery company currently uses one employee per vehicle to deliver packages. Each…
A: Answer: Part a: A driver's per day marginal revenue product is basically the revenue that the hiring…
Q: The WalkRite Shoe Company operates a chain of shoe stores that sell men's shoes with identical unit…
A: Breakeven (BE) point is a stage where firm’s total revenue is same as total firm’s cost or firm…
Q: Rachael's Restaurant, a fast-food restaurant company, operates a chain of restaurants across the…
A: Explanation: Fixed cost - A fixed cost is a cost that does not change with an increase or decrease…
Q: Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 31,000 rolls annually…
A: In make or buy decision making, that option should be adopted which is less costly.
Q: A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop…
A: Breakeven points may be used in a lot of different situations. The breakeven point in a property,…
Q: Chaffee Corporation staffs a helpline to answer questions from customers. The costs of operating the…
A: The answer for the multiple choice question and relevant working are presented hereunder :
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: REVENUE & SPENDING VARIANCE IS USED TO FIND THE DIFFERENCE BETWEEN THE BUDGETED AND ACTUAL…
Java Joe’s operates a chain of coffee shops. The company pays rent of $12,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The manager of each shop is paid a salary of $2,000 per month, and all other employees are paid on an hourly basis. Relative to the number of customers for a shop, the cost of rent is which kind of cost? cFixed cost Variable cost Mixed cost Relevant cost
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Identifying Fixed, Variable, Mixed, and Step Costs Consider each of the following independent situations: a. A computer service agreement in which a company pays 150 per month and 15 per hour of technical time b. Fuel cost of the companys fleet of motor vehicles c. The cost of beer for a bar d. The cost of computer printers and copiers at your college e. Rent for a dental office f. The salary of a receptionist in a law firm g. The wages of counter help in a fast-food restaurant h. The salaries of dental hygienists in a three-dentist office. One hygienist can take care of 120 cleanings per month. i. Electricity cost which includes a 15 per month billing charge and an additional amount depending on the number of kilowatt-hours used Required: 1. For each situation, describe the cost as one of the following: fixed cost, variable cost, mixed cost, or step cost. (Hint: First, consider what the driver or output measure is. If additional assumptions are necessary to support your cost type decision, be sure to write them down.) Example: Raw materials used in productionVariable cost 2. CONCEPTUAL CONNECTION Change your assumption(s) for each situation so that the cost type changes to a different cost type. List the new cost type and the changed assumption(s) that gave rise to it. Example: Raw materials used in production. Changed assumptionthe materials are difficult to obtain, and a years worth must be contracted for in advance. Now, this is a fixed cost. (This is the case with diamond sales by DeBeers Inc. to its sightholders. See the following website for information: www.keyguide.net/sightholders/.)Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
- 1.Java Joe’s operates a chain of coffee shops. The company pays rent of $12,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The manager of each shop is paid a salary of $2,000 per month, and all other employees are paid on an hourly basis. Relative to the number of customers for a shop, the cost of rent is which kind of cost? Fixed cost Variable cost Mixed cost Relevant cost Question 2.2.Select the correct statement regarding fixed costs. They do not change, because fixed costs should be ignored in decision making. The fixed cost per unit increases when volume increases. The fixed cost per unit decreases when volume increases. The fixed cost per unit does not change when volume decreases. Question 3.3.Gypsy Joe’s operates a chain of coffee shops. The company pays rent of $10,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The managers of each shop are paid a salary of $2,500 per month and all…William Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,510 per month. One of the barbers serves as the manager and receives an extra $580 per month. In addition to the base salary, each barber also receives a commission of $8.40 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines William currently charges $18.00 per haircut. (a) Determine the unit variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Your answer is correct.. Total unit variable cost per haircut Total fixed costs (b) $300 per month $1,020 per month $0.45 per haircut $150 per month plus $0.15 per haircut $30 per month eTextbook and Media (d) V Your answer is correct. Break-even point Break-even point sales $ Compute the break-even point in sales units and in sales dollars. eTextbook and Media Your answer is incorrect. $ Net income $ $ 1070 19260 9 9630 haircuts Determine…Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 6,210 $ 760 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 780 $ 520 $ 2,170 $ 880 Actual Results 2,110 190 $ 30,240 $ 9,910 $ 6,150 $ 960 $ 494 1,016 $ 520 $ 2,170 $ 880 Cost per Pizza $ 4.80 $ 0.80 $ $ 0.20 In November, the pizzeria budgeted for 2,010 pizzas at an average selling price of $14 per pizza and for 210 deliveries. Data concerning the pizzeria's actual results in November appear below: cost per Delivery $ 2.60 $…
- Java Joe’s operates a chain of coffee shops. The company pays rent of $12,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The manager of each shop is paid a salary of $2,000 per month, and all other employees are paid on an hourly basis. Relative to the number of customers for a shop, the cost of rent is which kind of cost?Gypsy Joe’s operates a chain of coffee shops. The company pays rent of $10,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The managers of each shop are paid a salary of $2,500 per month and all other employees are paid on an hourly basis. The costs of supplies relative to the number of customers in a particular shop and relative to the number of customers in the entire chain of shops is which kind of cost, respectively? Variable cost / fixed cost Fixed cost / fixed cost Variable cost / fixed cost Variable cost / variable costVin Diesel owns the Fredonia Barber Shop. He employs four barbers and pays each a base rate of $1,250 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $4.50 per haircut.Other costs are as follows.Advertising $200permonth Rent $1,100permonth Barber supplies $0.30 per haircut Utilities $175 per month plus $0.20 per haircut Magazines $25 per monthVin currently charges $10 per haircut.Instructions(a) Determine the variable costs per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use incre-ments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis. (d) Determine net income, assuming 1,600 haircuts are given in a month.
- Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle. Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Pizza ingredients. Excee Kitchen staff n+ili+ Utilities Delis Delivery person Delivery vehicle Equipment depreciation. Rent Miscellaneous $ 6,090 $ 700 Pizzas Deliveries Revenue Expenses: $ 720 $ 472 Pizza ingredients Kitchen staff $ 2,050 $ 820 In November, the pizzeria budgeted for 1,830 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 1,930 210 520 $ 31,520 930 $ 8,830 $ 6,030 $930…Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 4 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle. Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Expenses: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent $ 6,250 $ 780 $ 0.10 In November, the pizzeria budgeted for 2,070 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November were as follows: Miscellaneous Total expense…Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent $ 5,910 $ 610 Miscellaneous $ 630 $ 400 $ 1,870 $ 730 In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results. 1,660 200 $ 25,450 $ 7,210 $ 5,850 $ 885 $ 620 $ 986 $ 400 Cost per Pizza $ 4.40 $ 1,870 $ 790 $ 0.30 Cost per Delivery $ 0.15 $ 3.10 $…