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Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068 Exercise 50
Step-by-step solution
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Step 1 of 2
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a. | Sales... |
| $250,000 |
| Variable operating expenses: |
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| Cost of sales (food, beverages, and snack items @ 50%) | 125,000 |
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| Food service items (spoons, napkins, etc.)... | 3,600 |
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| Wages for part time employees.... | 48,000 | 176,600 |
| Contribution Margin... |
| $ 73,400 |
| Fixed operating expenses: |
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| Utilities. | $ 7,200 |
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| Convenience operation manager’s salary. | 60,000 |
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| General manager’s salary. | 18,000 |
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| Advertising... | 20,000 |
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| Insurance.. | 12,000 |
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| Property taxes... | 3,000 |
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| Food equipment depreciation... | 5,000 |
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| Building depreciation... | 15,000 | 140,200 |
| Operating loss..... |
| $ (66,800) |
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Step 2 of 2
Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
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