Evaluate the cost of a 20-guest afternoon picnic

Reference no: EM1377476

Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to evaluate the costs of her catered parties. Each party is limited to 20 guests and needs 4 people to serve and clean up. Cathy offers two types of parties, an afternoon picnic and an evening formal dinner. The breakdown of the costs given:

Activities (and cost drivers) Afternoon Picnic Formal Dinner
Advertising (parties) $ 89 per party $ 89 per party
Planning (parties) $ 64 per party $ 146 per party
Renting equipment $ 47 per party plus $ 70 per party plus
(parties, guests) $ 14 per guest $ 20 per guest
Obtaining insurance (parties) $ 240 per party $ 360 per party
Serving (parties, servers) $ 57 per server per party $ 76 per server per party
Preparing food (guests) $ 16 per guest $ 32 per guest

Per party costs do not vary with the number of guests.

Required:
(a) Evaluate the cost of a 20-guest afternoon picnic.

Afternoon picnic $

(b) Evaluate the cost of a 20-guest evening formal dinner.

Evening formal dinner $

(c) How much should Cathy charge for every guest for each type of party if she needs to cover her costs?

Reference no: EM1377476

Questions Cloud

Determine the equivalent annual cost of all operating costs : Determine the equivalent annual cost of all operating costs, for a life of 25 years and current worth of all operating costs, for a life of 25 years.

Discuss and define a rational business model : Discuss and define a rational business model and the rational business model in rapidly changing business environments.

Compute forecasts for the remaining five months : The subsequent tabulations are actual sales of units for six months also a starting forecast in January.Compute forecasts for the remaining five months utilizing simple exponential smoothing with.

Explain cost or benefit analysis : Explain What are the costs of the new systems that may be implemented? How do we validate their implementation at CanGo

Evaluate the cost of a 20-guest afternoon picnic : Evaluate the cost of a 20-guest afternoon picnic and evaluate the cost of a 20-guest evening formal dinner.

Compute the taxable income : The computer is used 100 percent for business. Muhammad did not make a $179 election with respect to computer. He does not claim additional first-year depreciation.

Construct a decision tree based on this information taking : You have the option to refer first to get perfect knowledge which will help knowing what will happen (good/bad). Construct a decision tree based on this information taking into account inflexible, flexible, and consulting.

consider how this affects capacity planning : Your Organization has added a new dealership line to receive the key fob remote. The projected sales for the next six months are 150,000 cars, needing two fobs each. Consider explain how this affects capacity planning.

Find kathys correct filing status : Find Kathy's correct filing status is Head of Household - what are the needs for Kathy to claim an educator expense adjustment?

User Account

All Pages