Your fast food restaurant is located in a busy shoppingmall. You are approaching the holiday season, whichis known for increased foot traffic and sales due toshoppers and families looking for quick and convenientmeals while shopping for gifts. Your budget activity is500 orders, while the actual orders are 650.Revenue: RM65 (Q)Wages and salaries: RM4,000 + RM25(Q)Gasoline and supplies: RM8 (Q)Equipment maintenance: RM2.50 (Q)Some expenses are not directly related to the numberof orders served. They are the fixed costs: office andshop utilities, RM800; office and shop rent, RM1,500;equipment depreciation, RM2,000; and insurance,RM800.by using flexible budget, determine whether yourrestaurant is doing well or not. Discuss thoroughly.

Flexible budget is that type of budget which changes along with change in activity level. Comparing…

Answered: Your fast food restaurant is located in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Describe the seasonal scenario that can influence a restaurant’s cash flow within one year of operation. In the scenario, your business faces a cash flow issue, and you just have RM15,000 in your account. Which of the following payments you are going to initiate first and why? Outstanding payment to your main supplier which supplies the main fresh ingredients daily (RM 9,500). Utility bill that you have received the second warning (RM 3,500). Monthly Payroll which overdue for 10 days (RM 17,000). Monthly rent which you have not paid for 3 months (RM 10,000).
You find yourself in a situation commonly faced by Financial Managers. Your Managing Director thinks business will improve if you change your current policy of cash sales only to allow for credit sales. Currently your annual sales are GH¢6,000. If you offer 30 days credit, you will need to set up a credit department. You expect that it will cost you GH¢2 to run this department monthly. Naturally, you expect all customers to buy on credit for 30 days. You anticipate that 1.5% of credit sales will not be collected. You must also make additional investments in debtors but not in fixed machinery or other overheads by drawing on your credit line with a bank on which you expect to pay 12% per annum interest on amounts drawn. Your cost of sales has been 60% of sales. Additionally, marketing expenses are 25% of sales. If your tax rate is 25% by how much must your sales increase to make this change worthwhile?
a. Assume that the cost of goods sold is 60% and that the monthly discount rate is 1%. Looking at the values in the exhibit above, you note that the average monthly revenue for a subscribed customer rises as the company sends more emails. In addition, the average monthly revenue for an unsubscribed customer also rises as the company sends more emails. What could explain both of these patterns? b. Calculate the 6-month LTV for each of the four tested email frequencies. Please show the spreadsheet with your calculations and be clear about any assumptions you are making. c. Based on this test, how many emails-per-week should the company be sending to its customers? This email frequency should apply to all customers; the company doesn't want to implement a different email frequency for different kinds of people
Refer to the following data of Good Food Snack House (in the photo) _____22. What is their Cash Conversion Cycle if their Operating Cycle is 135 days?A. 104 days B. 105 days C. 106 days D. 107 days _____23. What is the Average Inventory of Good Food Snack House?A. Php 1,067,570 B. Php 1,607,057 C. Php 1,765,070 D. Php 5,017,657
A store sells t-shirts. The average selling price is Rs.15 and the average variable cost is Rs.9. Fixed costs of operating the store (its operating expenses) are Rs. 100,000 per year. Find Break-even in units, P/V ratio and margin of safety. How many shirts must be sold to earn a targeted profit of Rs.20,000?
3. A large bakery buys sugar in 50-kg bags. The bakery uses an average of 1,344 bags a year. Preparing an order and receiving a shipment of sugar involves a cost of P135. Annual carrying costs are P 630 per bag. The bakery operates 280 days per year. Lead time = 2 weeks. a. Determine the economic order quantity. b. What is the average number of bags on hand? c. When should the bakery order for more sugar? d. How many times per year will the bakery order for sugar?
Hi, please help me with this problem. I hope I'd get all of the needed answers here. Please. Need asap. Thanks a lot. *** Zesto Company order 480,000 packs of apple juice per year from a Marikina distributor. A two-dozen pack case of juice delivered to Zesto warehouse cost P48 including freight charges. The company borrows funds at 10 percent interest rate to finance its inventory. Zesto Company purchasing agent has calculated that it cost P150 to place an order for apple juice and that the annual carrying cost (electricity, insurance, handling ) is P.80 for each pack of juice. Required:a. Determine the Economic Order Quantity. b. Would you accept the offer if the Marikina distributor offered a 10% discount off the delivery price for minimum orders of P60,000 packs?
Need help with this one question. Q- A furniture store is selling a dining room set for a cash price of $979 plus HST. They also have an instalment plan of 36 monthly payments of $33.33, HST included. It is ture that... -paying cash is about $94 cheaper then with the instalment plan. -paying with the instalment plan is about $94 cheaper then paying with cash. - paying with the instalment plan is about $104 cheaper then paying with cash. -paying cash is about $104 cheaper then with the instalment plan.
Natasha's Flowers, a local florist, purchases fresh flowers each day at the local flower market. The buyer has a budget of $940 per day to spend. Different flowers have different profit margins, and also a maximum amount the shop can sell. Based on past experience the shop has estimated the following NPV of purchasing each type: NPV per bunch Cost per bunch Max. Bunches Roses $2 $21 25 Lilies $9 $25 10 Pansies $4 $30 10 Orchids $19 $78 5 What combination of flowers should the shop purchase each day? The profitability index for each choice is: (Round to three decimal places.)
The manager of Bernadette Company has a plan to increase sales vorume ut the store. The average operating results for each week are given below: Sales revenue Variable costs Fixed costs for one week P120,000 90,000 20,000 The manager plans to bring shoppers into the store by having a weekly raffle for a prize of P2,000. For every twenty pesos of merchandise purchased, the shopper will receive a numbered ticket for the raffle. The variable cost tO print and distribute the tickets has been estimated Promotion and other fixed costs in connection with the raffle have been estimated at PI,000 per week. at PO.40 per ticket. The manager estimated that sales can be doubled with the weekly raffle. The regional manager is skeptical and believes that the cost of promotion will be vary high although it may increase sales slightly to P130,000 a week. REQUIRED: 1. Compute the average weekly net income they are making at present without the raffle. 2. Compute the sales revenue required to break-even…
A daycare charges $46 per day per child. Fixed expenses include $126 per day for wages and $339 per day for space rental and insurance. The daycare can take in up to 15 children each day and is expected to be full. (a) To break even, what is the most that can be spent on supplies per child per day? (b) To achieve a profit of $60 per day, what is the amount that can be spent on supplies per child per day? (a) To break even, the most that can be spent on supplies is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) instructor W O Bu barna Clear all Check answer TUF GAMINE
Mere Mang Eduard operates a buy and sell business. He sells umbrellas in his shop near the city mall. He gets his umbrellas from a local dealer. Each umbrella costs 90.00 pesos each. Expecting rainy season to come, Mang Eduard purchased 4 dozens of umbrellas every week. The supplier theh charges 200.00 pesos per dozen for freight. Mang Eduard can sell 12 umbrellas every day. Remember to use the factors to consider in projecting revenues and refer to tables 4, 5 and 6 as your guide. Suppose Mang Eduard purchases and sales is the same every month, fill in the necessary information in table 6. Mom Table 4 Cost Projected Cost of Goods Sold (Monthly) Goods Projected Volume Expens Total Cc Merchandise/ Cost per Unit Average No. of Projected Costs of Expens Products Items Sold (Monthly) Purchases (Monthly) (A) F = (D x 30 days) J= (A x F) Month Cost o 06 Goods S Expense Total Total Cost Expenses

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