Evaluate debit and credit card fees

Assignment Help Financial Accounting
Reference no: EM135606

Q:

Evaluate debit and credit card fees

The local Japanese-style steakhouse expects sales to be $500,00 in January. The average restaurant bill is $50. Only 25 percent of restaurant bills are paid in cash, while 70 percent are paid with credit cards and 5 percent are paid with debit cards. The transaction fees charges by the debit and credit card issuers are as given:

Credit cards: $0.50 per transaction + 2% of the amount charged

Debit cards: $0.22 per transaction + 0.05% of the amount charged

Requirements

a. How much of the total sales revenue is required to be paid with cash?

b. How many customers transaction does the company imagine in January?

c. How much of the total sales revenue is predictable to be paid with credit cards?

d. How many customer transactions may be paid for by customers using credit cards?

e. When budgeting for January's operating expenses, how much could the restaurant expect to incur in credit card transaction fees?

f. How much of the total sales revenue is predictable to be paid with debit cards?

g. How many customer transactions can be paid for by customers using debit cards?

h. When budgeting for January's operating expenses, how much could the restaurant expect to incur in debit card transaction fees?

i. How much money may be deposited in the restaurant's bank account in the month of January related to debit and credit card sales? Suppose the credit and debit card issuers deposit the funds on the similar day the transactions occur at the restaurant.

Reference no: EM135606

Questions Cloud

Evaluate whether to pay dividends including tax consequences : Discuss and consider the several considerations that each kinds of corporation balance in evaluating whether to pay dividends, including the tax consequences of doing so.
Did safeway prepare enough cash from operations : In 2008, did Safeway prepare enough cash from operations to fund all of its investing activities Did Safeway produce enough cash from operations to cover both its investing and its financing activities
Explain value chain of farming business : The cost of innovation has a straight impact on marketing, service and sales section in the value chain. Without sales and growing market share.
Determine the breakeven point in units : Determine the breakeven point in units for the Peoria plant and for the Moline plant and evaluate the operating income that would result from the production manager's plan to manufacture 96,000 units at each plant.
Evaluate debit and credit card fees : How much of the total sales revenue is required to be paid with cash and how many customers transaction does the company imagine in January
Recognize types of responsibility centers : Recognize types of responsibility centers as a cost center, a profit center, a revenue center or an investment center.
Examine a performance report : Total the performance evaluation report for this subunit and based on the data shown, what kind of responsibility center is the subunit
Evaluate the acquisition cost of each intangible asset : Reporting and Computing the Acquisition and Amortization of three Different Intangible Assets - Evaluate the acquisition cost of each intangible asset
Determine the total manufacturing cost per unit : Determine the overhead allocation rate using the present traditional volume-based allocation method. Evaluate the total manufacturing cost per unit of each customer using the present allocation method.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What strategies did the management of super bakery

Why did Super Bakerys management believe it was necessary to install an ABC system

  Evaluate the direct materials price and quantity variances

Evaluate the direct materials price and quantity variances for July.2. Determine the direct labor rate and efficiency variances for July.

  Calculate the mix and quantity variance for data

Calculate the mix and quantity variance for data

  Present arguments in favor of cost allocation

Present arguments in favor of cost allocation Does cost allocation provide relevant information? Would a current-value approach to computation of fixed assets be preferable? Why?

  Determine margaret''s adjusted basis in partnership interest

Determine Margaret's adjusted basis in her partnership interest in MP Partnership at the end of 2012?

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Prepare a financial statement worksheet

Prepare a financial statement worksheet

  Evaluate the amount of net loss

Evaluate the amount of net loss that Jones can report on its income statement for the year

  Write the appropriate journal entries to record wages

Write the appropriate journal entries to record wages and salaries expense and payroll tax expense for the January 2013 pay period.

  What is the forecasted addition to retained earnings

What is the forecasted addition to retained earnings for 2010? A budget is a formal written statement of management's strategies for the future expressed in financial terms. Evaluate the forecasted inventory balance have to be to achieve a Turn..

  Evaluate subsequent income and expenses

Evaluate subsequent income and expenses

  Determine jasons basis in the land in the inventory

Determine Jason's basis in the land, in the inventory, and in the partnership interest instantly following the distribution.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd