User Account

All Pages

What variable rate is the owner projecting

Assignment Help Accounting Basics
Reference no: EM132608147

Question -

(a) The owner of Brad 1 Restaurant estimates that fixed costs for the coming year will be RM860, 000. Based on his investment in the business, he wants a profit of RM980, 000 for the year. Experience has shown that the average check is RM20.90.

(i) If total variable cost is RM900, 000, what level of Ringgit (RM) sales will be required to earn the target restaurant profit?

(ii) Given total variable costs and total sales figures calculated in Question 1(i), what variable rate is the owner projecting?

(iii) Given the variable rate calculated in Question 2(ii), determine the contribution rate. Describe the two limitations of CVP analysis.

b) The following information is from the records of Brad 2 Restaurant:

Sales RM976, 000

Variable cost RM366, 000

Fixed cost RM300, 000

Assume that sales volume equals to 25,000 covers:

(i) Calculate profit.

(ii) Calculate average Ringgit (RM) sales.

(c) Describe the two limitations of CVP analysis.

Reference no: EM132608147

Questions Cloud

Discuss the topic of criticality : Discuss the topic of "criticality" as it relates to "critical infrastructure." How is "criticality" defined in terms of critical infrastructure
Successful application of eprocurement : One successful application of eProcurement is Reverse Auctions. Select one of your favorite customer goods
More important than risk management in aviation : Although we manage risk all day long in our lives, nothing is more important than risk management in aviation.
Explain a father configuration compared to direct ownership : Explain a Father/Son/Grandson configuration compared to a direct ownership. Next, identify a company that possesses this type of structure
What variable rate is the owner projecting : Given total variable costs and total sales figures calculated in Question 1(i), what variable rate is the owner projecting
Describe three leadership traits identified by dubrin : Describe three (3) leadership traits identified by DuBrin. How did Commander D. Michael Abrashoff use these traits to effectively command
Develop a plan for evaluation of training effectiveness : Develop a plan for evaluation of training effectiveness including both short-term and long-term evaluation where appropriate. Your presentation must be.
Describe process used in preparing a consolidated statement : Worksheet, but the consolidated statement of cash flows is not. Describe the process used in preparing a consolidated statement of cash flows.
Discuss how biblical worldview frames innovation : Discuss how Biblical worldview frames innovation for the Christian health administrator.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which of the following is an merits of corporations

which of the following is an advantage of corporations relative to partnerships and sole proprietorships? reduced legal

  What is the npv of the new production line

ACME Manufacturing is considering replacing an existing production line with a new line that has a greater output capacity and operates with less labor.

  Calculate average collection period and total asset turnover

Lopez Electronics' management has long viewed TKO Electronics as an industry leader and Calculate Average collection period and Total asset turnover

  Freds electrical incfreds electrical inc sells electrical

case a freds electrical inc.freds electrical inc. sells electrical parts to electrical contractors in the northwestern

  Discuss merchandising transactions of bask company

Prepare journal entries to record the following merchandising transactions of Bask Company, which applies the perpetual inventory system.

  Barber inc purchased a truck on january 1 2010 for 36000 at

barber inc. purchased a truck on january 1 2010 for 36000. at that time the trucks useful life was an estimated four

  Total receivables to cover sales discounts

Quick Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts.

  Understanding of industry security practices

The following assessment gives you the opportunity to demonstrate your knowledge of participants in the financial services industry, understanding of industry security practices, the role of one of the financial regulators and the legislation unde..

  Why are sunk costs irrelevant

Why are sunk costs irrelevant in deciding whether to sell a product in its present condition or to make it into a new product through additional processing?

  Prepare general journal entries to record transactions

5,000 shares of preferred stock are sold for cash at $120 per share. Prepare the general journal entries necessary to record these transactions

  What is the role of an actuary relative to pension plan

What is the role of an actuary relative to pension plans what are actuarial assumptions?

  Compute the total overhead variance

The predetermined overhead rate for Marigold Corp. is $5, comprised of a variable overhead rate of $3. Compute the total overhead variance

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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