Data tablePlan A: Pay $0.07 per minute of long-distance calling.Plan B:Pay a fixed monthly fee of $14 for up to 340 long-distance minutes and$0.04 per minute thereafter (if she uses fewer than 340 minutes inany month, she still pays $14 for the month).Plan C: Pay a fixed monthly fee of $25 for up to 500 long-distance minutes and$0.02 per minute thereafter (if she uses fewer than 500 minutes, she stillpays $25 for the month).PrintDone- Xmusent levtal cos Bridget Compo is getting ready to open a small restaurant. She is on a tight budget and must choose between thefollowing long-distance phone plans:(Click the icon to view the long-distance phone plans.)Read the requirements.Requirement 1. Match the graphs to the total monthly costs of the three plans for different levels ofmonthly long-distance calling.Before we match the graphs to the plans, complete the following table, calculating the total costs for each plan ateach of the different minute levels. (Round to the nearest cent.)100 minutes 340 minutes 540 minutesPlanABCB

A budget helps with cost management, resource allocation optimisation, and decision-making.…

Plan A: Pay $0.07 per minute of long-distance calling. Plan B: Pay a fixed monthly fee of $14 for up to 340 long-distance minutes and $0.04 per minute thereafter (if she uses fewer than 340 minutes in any month, she still pays $14 for the month). Plan C: Pay a fixed monthly fee of $25 for up to 500 long-distance minutes and $0.02 per minute thereafter (if she uses fewer than 500 minutes, she still pays $25 for the month).

Plan A: Pay $0.07 per minute of long-distance calling. Plan B: Pay a fixed monthly fee of $14 for up to 340 long-distance minutes and $0.04 per minute thereafter (if she uses fewer than 340 minutes in any month, she still pays $14 for the month). Plan C: Pay a fixed monthly fee of $25 for up to 500 long-distance minutes and $0.02 per minute thereafter (if she uses fewer than 500 minutes, she still pays $25 for the month).

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 46E: Method of Least Squares Refer to the information for Luisa Crimini on the previous page. Required:...

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Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offeringtake-out and free home delivery services. The pizzeria’s owner has determined that the shop has two majorcost drivers—the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria’scosts appear below:Fixed Cost Cost per Cost perper Month Pizza DeliveryPizza ingredients ............... $3.80Kitchen staff ....................... $5,220Utilities ............................... $630 $0.05Delivery person .................. $3.50Delivery vehicle ................. $540 $1.50Equipment depreciation ..... $275Rent ................................... $1,830Miscellaneous .................... $820 $0.15In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizzaand for 180 deliveries.Data concerning the pizzeria’s operations in November appear below:Actual ResultsPizzas ................................... 1,240Deliveries…
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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: Pizza ingredients Fixed Cost Cost per per Month Pizza $ 4.50 $ 5,930 Cost per Delivery Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 620 $640 $ 408 $1,890 $740 $0.40 $ 3.20 $ 0.20 $ 1.60 In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November appear below. Actual Results Pizzas Deliveries Revenue 1,690 210 Kitchen staff Delivery person $27,600 Pizza ingredients $ 7,390 $ 5,870 Utilities. $ 890 $ 672 $ 988 $ 408 $ 1,890 $ 796 Delivery vehicle Equipment depreciation Rent Miscellaneous…
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Refer to the information for Luisa Crimini above.Required:1. Which month represents the high point? The low point?2. Using the high-low method, compute the variable rate for tanning. Compute the fixedcost per month.3. Using your answers to Requirement 2, write the cost formula for tanning services.4. Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement 3. Of that total cost, how much is thetotal fixed cost for September? How much is the total predicted variable cost forSeptember?5. CONCEPTUAL CONNECTION Identify and briefly explain any additional issues thatLuisa might be wise to consider when using the high-low method to estimate the costs ofher tanning salon.