Question

In: Finance

If you operated for 325 days/year, assuming 50 burgers sold/day; VC = $3.50; FC = $65.3K/year;...

If you operated for 325 days/year, assuming 50 burgers sold/day; VC = $3.50; FC = $65.3K/year; and SP = $7.00, your total cost per burger would be?

Select one:

a. $7.09

b. $7.15

c. $7.52

Solutions

Expert Solution

Number of burgers sold in a year = Sales per day x Number of days operated in a year

                                                    = 50 x 325 = 16,250

Fixed cost per burger = Total annual fixed cost/ Number of burgers sold

                                   = $ 65,300/16,250 = $ 4.018462 or $ 4.02

Variable cost per burger = $ 3.50

Total cost per burger = Fixed cost + Variable cost

                                  = $ 4.02 + $ 3.50 = $ 7.52

Hence option “c. $ 7.52” is correct answer.

jeff jeffy answered 11 months ago
Next > < Previous

Related Solutions

You buy a four-year bond that has a 3.50% current yield and a 3.50% coupon (paid...
You buy a four-year bond that has a 3.50% current yield and a 3.50% coupon (paid annually). In one year, promised yields to maturity have risen to 4.50%. What is your holding-period return? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Holding-period return %
Table 3: Cars Sold per Day # Per Day # Days 0 35 1 75 2...
Table 3: Cars Sold per Day # Per Day # Days 0 35 1 75 2 55 3 25 4 10 For example, 35 of the days, no cars were sold. For 75 days one was sold. How many days were used in this study? Based on this study, what was the expected number of cars sold per day? What is the probability of selling 5 cars in a day? What was the variance in the expected number of cars...
Our class has 50 students. Assuming that no students are born on leap days (February 29),...
Our class has 50 students. Assuming that no students are born on leap days (February 29), what is the probability that no two students share the same birthday? What is the probability that at least one of the students has the same birthday as another student in the class? Please provide your answers in the form of a fraction.
A Company uses a 10-hp motor for 16 hours per day, 5 days per week, 50...
A Company uses a 10-hp motor for 16 hours per day, 5 days per week, 50 weeks per year in its flexible work cell. This motor is 85% efficient, and it is near the end of its useful life. The company is considering buying a new high efficiency motor (91% efficient) to replace the old one instead of buying a standard efficiency motor (86.4% efficient). The high efficiency motor cost $70 more than the standard model, and should have a...
On a hot summer day, a 23-year old man was brought to the ER 3 days...
On a hot summer day, a 23-year old man was brought to the ER 3 days after onset of fever, severe headache, and muscle pain. He was also experiencing nausea, vomiting, and abdominal pain. A fine, spotted rash was seen on his extremities and trunk; the patient said the rash appeared the day earlier. He recently visited North Carolina and had no prior history of illness. He had received all of his appropriate childhood illnesses. What disease does this patient...
Tokio bought a 180-day $100 000 bank bill 74 days ago for $98 300.00. She sold...
Tokio bought a 180-day $100 000 bank bill 74 days ago for $98 300.00. She sold it to Samuel today and received $99 000.00. (a) Draw a cash flow diagram that captures the details of Tokio's transactions. (b) Calculate the purchase yield (simple interest rate) and sale yield (simple interest rate) of this bill (as a %, rounded to 2 d.p.) (c) Without any further calculations, explain how the selling price will change if Samuel accepts a lower yield. (d)...
You work in a factory that runs 24 hr a day, 7 days a week. The...
You work in a factory that runs 24 hr a day, 7 days a week. The boss insists that all 10 of the machines in the factory get a good servicing before he goes on vacation. Each of these machines has a part replaced that has an MTTF(µ) of 10,000hrs. The boss will then take the next 2 months (60 days) off for his “well deserved” vacation. The purchasing department will not purchase any expensive items while the boss is...
You bought 500 shares of stock A at $600 on day 0 and you sold it...
You bought 500 shares of stock A at $600 on day 0 and you sold it at  $1000 on day 700. The daily discount rate is 0.0001%. How much profit did you make in terms of net present value?
You eat five days per week at the same restaurant, and every day you order a...
You eat five days per week at the same restaurant, and every day you order a sandwich and a drink. There are 26 sandwiches including 6 vegetarian options, and 15 drinks including 4 caffeine-free drinks. On Tuesdays, you like to eat healthy, so you always choose a vegetarian sandwich and a caffeine free drink on Tuesdays. The other days you can eat any sandwich and drink any drink - but you never repeat a sandwich or a drink in the...
You eat five days per week at the same restaurant, and every day you order a...
You eat five days per week at the same restaurant, and every day you order a sandwich and a drink. There are 26 sandwiches including 6 vegetarian options, and 15 drinks including 4 caffeine-free drinks. On Tuesdays, you like to eat healthy, so you always choose a vegetarian sandwich and a caffeine free drink on Tuesdays. The other days you can eat any sandwich and drink any drink - but you never repeat a sandwich or a drink in the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT