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:

Food Cost Percentage

Select one:

a. 58.98%

b. 66.41%

c. 21.23%

d. 34.00%

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:

Beverage Cost Percentage

Select one:

a. 14.00%

b. 66.41%

c. 21.23%

d. 34.00%

3)

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 Fixed Costs

Select one:

a. $14,840

b. $33,060

c. $16,100

d. $24,000

Answer 1