
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Solve this cost accounting question

Transcribed Image Text:A college's food operation has an average meal price of
$9.20. Variable costs are $4.35 per meal and fixed costs
total $95,000. How many meals must be sold to provide
an operating income of $33,000? How many meals would
have to be sold if fixed costs declined by 23%? (round to
the nearest meal)
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- A college's food operation has an average meal price of $9.20. Variable costs are $4.35 per meal and fixed costs total $95,000. How many meals must be sold to provide an operating income of $33,000? How many meals would have to be sold if fixed costs declined by 23%? (round to the nearest meal) answer this accounting questionarrow_forwardA college's food operation has an average meal price of $9.20. Variable costs are $4.35 per meal and fixed costs total $95,000. How many meals must be sold to provide an operating income of $33,000? How many meals would have to be sold if fixed costs declined by 23%? (round to the nearest meal)arrow_forwardRound to the nearest mealarrow_forward
- Can you solve this financial accounting problem using appropriate financial principles?arrow_forwardNO WRONG ANSWERarrow_forwardProjected financial results for the university's cafeteria for next year are shown. Answer each of the following independent questions. Sales $944,000 Fixed Cost $597,000 Total Variable Cost $235, 470 Total Cost $832, 470 Net Income $111,530 (a) How much is the contribution margin and the contribution rate?(b) How much does the business need to sell to break even?(c) If the business was to spend $24,000 to upgrade their processes, how much does the business need to sell to break even?(d) If 9% more meals were sold, what would be the resulting net income?arrow_forward
- Can you explain the process for solving this financial accounting question accurately?arrow_forwardGood Times Restaurant estimates the following costs for next year: fixed costs $120,000, variable cost per meal $15. If they want to earn a profit of $90,000 and charge $35 per meal, calculate the required number of meals. Accounting 23arrow_forwardAssume the total monthly operating costs of a Hardee’s restaurant are: $35,000 + $0.75Xwhere X = Number of burgers ordered Determine the average cost per burger if the monthly volume of burgers ordered is 20,000.arrow_forward
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