Question

1)

Below is last month's income statement for Aday’s Taqueria:

Sales:
Food Sales	$42,500.00
Beverage Sales	$21,500.00
Total Sales	$64,000.00
Less Costs Of Sales:
Food Costs	$14,450.00
Beverage Costs	$3,010.00
Gross Profit		$46,540.00
Less Expenses:
Insurance	$2,500.00
Rent	$3,000.00
Labor	$18,000.00
Miscellaneous	$1,400.00
Utilities	$1,600.00
Advertising	$2,400.00
Office Supplies	$800.00
Depreciation	$2,000.00
		$31,700.00
Net Profit	$14,840.00

The managers at ACME Factory have decided to classify costs as follows:

1.   All of Insurance, Rent, Advertising and Depreciation as Fixed Costs.

2.   All of Food and Beverage Costs as Variable Costs.

3.   20% of Miscellaneous and Utilities as Fixed Costs and the rest as variable costs.

4.   $200 of office supplies as Fixed Costs and the rest as variable costs.

5.   Labor cost is to be distributed as 70% Variable Costs and 30% Fixed Costs.

Using the above information, calculate the following:

Total Variable Cost

Select one:

a. $14,840

b. $33,060

c. $16,100

d. $24,000

2)

Below is last month's income statement for Aday’s Taqueria:

Sales:
Food Sales	$42,500.00
Beverage Sales	$21,500.00
Total Sales	$64,000.00
Less Costs Of Sales:
Food Costs	$14,450.00
Beverage Costs	$3,010.00
Gross Profit		$46,540.00
Less Expenses:
Insurance	$2,500.00
Rent	$3,000.00
Labor	$18,000.00
Miscellaneous	$1,400.00
Utilities	$1,600.00
Advertising	$2,400.00
Office Supplies	$800.00
Depreciation	$2,000.00
		$31,700.00
Net Profit	$14,840.00

The managers at ACME Factory have decided to classify costs as follows:

1.   All of Insurance, Rent, Advertising and Depreciation as Fixed Costs.

2.   All of Food and Beverage Costs as Variable Costs.

3.   20% of Miscellaneous and Utilities as Fixed Costs and the rest as variable costs.

4.   $200 of office supplies as Fixed Costs and the rest as variable costs.

5.   Labor cost is to be distributed as 70% Variable Costs and 30% Fixed Costs.

Using the above information, calculate the following:

Net Profit as Percentage of Sales

Select one:

a. 33.00%

b. 23.19%

c. 50.00%

d. 34.00%

3)

Aday’s Restaurant has the following income statement:

Revenue:
Food Sales	$240,000
Beverage Sales	$86,000
Total Sales		$326,000
Cost of Sales:
Food Costs	$72,000
Beverage Costs	$15,480
Total Costs		$87,480
Gross Profit		$238,520
Expenses:
Operating	$8,000
Labor	$26,000
Miscellaneous	$4,000
Administrative	$14,000
Total Expenses	$52,000
NET PROFIT		$186,520

Calculate the food cost % and the beverage cost %

        

Select one:

a. Food Cost % = 40%
Beverage Cost % = 40%

b. Food Cost % = 60%
Beverage Cost % = 40%

c. Food Cost % = 30%
Beverage Cost % = 18%

d. Food Cost % = 50%
Beverage Cost % = 50%

Answer 1

Question 1

Answer B ($33,060)

Calculation of total variable cost

Cost of sales

Food cost $14,450

Beverage cost    $3,010

Labor( 70% of18000)   $12,600

Miscellaneous

(80% Of 1400) $1,120

Utilities(80% of 1600) $1,280

Office supplies(800-200) $600

Total veriable cost $33,060

So the according to this B is correct answer .

Question 2

Answer B (23.19%)

Calculation:

Net profit percentage of sales:

Total sales = $64,000

Net profit= $14,840

(Net profit/ total sales) ×100

(14,840/64000)×100

=23.1875% or 23.19%

So according to this the b answer is correct .

Question 3

Answer C

(Food cost =30% ,Beverages cost= 18%)

Calculation:

for food:

Food sales =$240,000

Cost of food =$72,000

Food cost % =

( Food cost/food sales)×100

=(72,000/240,000)×100

30%

Food cost% =30%

For beverage

Beverage sales = $86,000

Cost of beverage = $15,480

Beverage cost=

(Cost of beverage/sale of beverage)×100

(15,480/86000) ×100

=18%

Cost of beverage % =18 %

So the according to this C answer is correct