Given the following how did the cvp change assuming cars

Assignment Help Accounting Basics

Reference no: EM13596661

Given the following, how did the CVP change? Assuming cars are always waiting to order 24 hours per day and the kitchen capacity is unlimited, how many cars per hour can be accommodated in the before and after configuration? How long would customers wait for an order in each configuration? What would the hourly sales be in each configuration? What percent of increase in contribution margin and net operating income would occur with the new configuration? The cost of reconfiguration is $40,000 with an asset life of 7 years. The annual fixed costs are $801,000, and increase 6% in the new configuration. What is the break even point after the reconfiguration? What will the payback period be? What additional information would you like to have to evaluate this scenario?

Average sale per car: $5.55

Average contribution margin per car: $3.22

Average time to take an order: 1 minute per car

Average time to prepare an order: 2 minutes per car

• Average time to collect money from the customer for an order: .5 minutes

Average time to hand out an order: 15 seconds

Key items to include: a CVP graph and a before and after Contribution Margin format statement.

Reference no: EM13596661

Questions Cloud

Broughton corp has prepared a production budget for : broughton corp. has prepared a production budget for february. management has determined that the total required

Discuss how pension plan can significantly impact the : discuss how pension plan can significantly impact the perforance of an organization.evaluate whether or not moving away

Dandy jeans sells two lines of jeans simple life and fancy : dandy jeans sells two lines of jeans simple life and fancy life. simple life sells for 85.00 a pair and fancy life

Ling has received been approved for a visa credit card with : ling has received been approved for a visa credit card with a 2000 credit limit however he has not charged that much

Given the following how did the cvp change assuming cars : given the following how did the cvp change? assuming cars are always waiting to order 24 hours per day and the kitchen

Smith and jones each owns tracts of land because of the : smith and jones each owns tracts of land. because of the location of their current operations each would prefer to have

Sherene nili manages a company that produces wedding gowns : sherene nili manages a company that produces wedding gowns. sheproduces both a custom product that is made to order and

Midland chemical co is negotiating a loan from manhattan : midland chemical co is negotiating a loan from manhattan bank and trust. the small chemical company needs to borrow

A four-year investment is expected to produce the cash : a four-year investment is expected to produce the cash flows shown below. an investor is willing to pay a price of

User Account

All Pages