Given the following how did the cvp change assuming cars

Assignment Help Accounting Basics

Reference no: EM13601085

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? After 417 Cars, Before, 278

How long would customers wait for an order in each configuration? After 3 minutes and 45 seconds before, about 5 minutes and 17 seconds.

What would the hourly sales be in each configuration? After, $92.00 per hour, before, $ 61.00 per hour
What percent of increase in gross profit would occur with the new configuration? About a 66% increase in gross profits
The cost of reconfiguration is $40,000 with an asset life of 7 years.
The annual fixed costs are $811,000, and increase 5% 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: $5.25
• Average contribution margin per car: $3.15
• 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, a before and after CM statement, and an illustration or spreadsheet of the drive-thru production, before and after the reconfiguration.

Reference no: EM13601085

Questions Cloud

Partridge co can further process product j to produce : partridge co. can further process product j to produce product d. product j is currently selling for 21 per pound and

Explain how the purchase of treasury stock affects earnings : 1. provide two possible reasons why a company might decide to purchase treasury stock.2. explain how the purchase of

Barney toys company manufctures large and small stuffed : barney toys company manufctures large and small stuffed animals. it has a lon-term contract with large chain of

She estimates the company could have sold 15000 units at a : maxwell company manufactures and sells a single product. the following costs were incurred during the companys first

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

You manage a real estate investment company one year ago : you manage a real estate investment company. one year ago the company purchased 10 parcels of land distributed

British productions performs london shows the avg show : british productions performs london shows. the avg. show sells 1200 tickets at 50ticket. there are 120 shows a year.

Shastri bicycle of mumbai india produces an inexpensive yet : shastri bicycle of mumbai india produces an inexpensive yet rugged bicycle for use on the citys crowded streets that it

Mk gallant is president of kranbrack corporation a company : m.k. gallant is president of kranbrack corporation a company whose stock is traded on a national exchange. in a meeting

User Account

All Pages