Calculate cost for each unit, Cost Accounting

Assignment Help:

Dropping a segment - George's Grill analyzes profitability of three operating units: restaurant, bar, and billiards room. Revenues, variable costs, and attributable fixed costs (which can be avoided if the unit is eliminated) for each unit are as follows:
__________________________Restaurant Bar Billiards Rm
Revenue $320,000 $150,000 $40,000
Variable costs 120,000 35,000 10,000
Attributable fixed costs 80,000 25,000 15,000
George the owner, is considering converting the billiards area into an expanded bar area.
a)Ignoring remodeling costs, by how much will the bar segment margin have to increase for the grill's income to be at least as high as it is now?
b)What other considerations will George want to consider before making the decision to eliminate the billiards unit to expand the bar area?


Related Discussions:- Calculate cost for each unit

Compute the equivalent units of production for materials, Clopack Company m...

Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department.

Calculate the profit maximizing quantity , Draw the relevant diagrams for a...

Draw the relevant diagrams for a typical farm, and for the market as a whole, when the market for wheat is in long run equilibrium. Assume the farm faces perfect completion. (hint,

Price to set on the job, Bakeson Bearings Ltd is preparing to submit a bid ...

Bakeson Bearings Ltd is preparing to submit a bid for a bearings order.  Janet Lake,  CEO of the Manufacturing Division, has asked Jason Docker, the management accountant, to prepa

Economic order quantity, #purchase price R45 order costs R175 lead time 6 d...

#purchase price R45 order costs R175 lead time 6 days cost of capital (after taxation) 20% direct inventory holding costs R25 annual demand 8500 units business operational 330day p

Marginal costing and break evan point analysis, what is marginal costing an...

what is marginal costing and explain concept of marginal costing

Labour, what is rowan incentive system

what is rowan incentive system

Calculate the atm fee should the bank charge - marginal cost, A bank in a m...

A bank in a medium-sized midwestern city, Firm X, currently charges $1 per transaction at its ATMs.  To determine whether to raise price, the bank managers experimented with a n

Target profit and break even analysis, Lindon Company is the exclusive dist...

Lindon Company is the exclusive distributor for an automotive product that sells for $43 per unit and has a CM ratio of 35%. The company''s fixed expenses are $421,400 per year. Th

Cash flows statement , You have recently graduated from VU and are now work...

You have recently graduated from VU and are now working for a small accounting firm. The firm recently purchases MYOB software for internal use. Upon learning that you had learnt M

Write Your Message!

Captcha
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