The Anderson Buffet offers an all-you-can-eat buffet meal for $32 per person. The restaurant employs ten salaried employees. Rent for the building, employee salaries, and other fixed costs for the restaurant are $73,800 per month when the restaurant serves meals up to 13,600 guests in that month. If the restaurant were to serve more than 13,600 guests in any given month, it would need to hire two additional servers and two additional kitchen staff for an additional fixed cost of $19,000 per month. The variable cost of food is $16 per guest. Read the requirements. Requirement 1. What is the restaurant's cost equation for estimating costs if the number of guests to be served is up to 13,600 guests per month? y= Requirement 2a. If the restaurant were to serve 12,300 guests in May, what would be the estimated total cost (Use the cost equation from Requirement 1.) If the restaurant were to serve 12,300 guests in May, the estimated total cost would be Requirement 2b. If the restaurant were to serve 12,300 guests in May, what would be the average cost per guest? If the restaurant were to serve 12,300 guests in May, the average cost per guest would be Requirement 3a. If the restaurant were to serve 10,600 guests in June, what would be the estimated total cost using the cost equation from Requirement 1? If the restaurant were to serve 10,600 guests in June, the estimated total cost using the cost equation from Requirement 1 would be Requirement 3b. If the restaurant were to serve 10,600 guests in June, what would be the estimated total cost using the average per guest cost from Requirement 2b? If the restaurant were to serve 10,600 guests in June, the estimated total cost using the average cost per guest from Requirement 2b would be Requirement 3c. Why is there a difference in the two cost estimates? There is a difference in the two cost estimates because the average cost per guest as volume changes, due to the Requirement 4. What is the restaurant's cost equation for estimating costs if the number of guests to be served is more than 13,600 guests per month? y= X+ Requirement 5. If the restaurant were to serve 14,400 guests in July, what would be the estimated total cost? (Use the cost equation from Requirement 4.) If the restaurant were to serve 14,400 guests in July, the estimated total cost using the cost equation from Requirement 4 would be of the buffet's costs. The fixed cost per unit as volume decreases, while the variable cost per unit
The Anderson Buffet offers an all-you-can-eat buffet meal for $32 per person. The restaurant employs ten salaried employees. Rent for the building, employee salaries, and other fixed costs for the restaurant are $73,800 per month when the restaurant serves meals up to 13,600 guests in that month. If the restaurant were to serve more than 13,600 guests in any given month, it would need to hire two additional servers and two additional kitchen staff for an additional fixed cost of $19,000 per month. The variable cost of food is $16 per guest. Read the requirements. Requirement 1. What is the restaurant's cost equation for estimating costs if the number of guests to be served is up to 13,600 guests per month? y= Requirement 2a. If the restaurant were to serve 12,300 guests in May, what would be the estimated total cost (Use the cost equation from Requirement 1.) If the restaurant were to serve 12,300 guests in May, the estimated total cost would be Requirement 2b. If the restaurant were to serve 12,300 guests in May, what would be the average cost per guest? If the restaurant were to serve 12,300 guests in May, the average cost per guest would be Requirement 3a. If the restaurant were to serve 10,600 guests in June, what would be the estimated total cost using the cost equation from Requirement 1? If the restaurant were to serve 10,600 guests in June, the estimated total cost using the cost equation from Requirement 1 would be Requirement 3b. If the restaurant were to serve 10,600 guests in June, what would be the estimated total cost using the average per guest cost from Requirement 2b? If the restaurant were to serve 10,600 guests in June, the estimated total cost using the average cost per guest from Requirement 2b would be Requirement 3c. Why is there a difference in the two cost estimates? There is a difference in the two cost estimates because the average cost per guest as volume changes, due to the Requirement 4. What is the restaurant's cost equation for estimating costs if the number of guests to be served is more than 13,600 guests per month? y= X+ Requirement 5. If the restaurant were to serve 14,400 guests in July, what would be the estimated total cost? (Use the cost equation from Requirement 4.) If the restaurant were to serve 14,400 guests in July, the estimated total cost using the cost equation from Requirement 4 would be of the buffet's costs. The fixed cost per unit as volume decreases, while the variable cost per unit
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...
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