At Bobs Big Burgers the rent cost for the restaurant is 3600

At Bob\'s Big Burgers, the rent cost for the restaurant is $36,000 per year. Would this be a 6 variable cost, a fixed cost, or a mixed cost? Tommie Company\'s CM ratio is 4 and fixed costs-$125,000. What revenue would Tommie 7 need to generate to make a profit of $75,000? 8 Name two capital budgeting techniques that use present value Willy has fixed costs of $42,000. The price of their product is $10 and the variable costs $4 9 per unit. What is the breakeven point in dollars? Tony Inc. underapplied the MO in the amount of $3,000. When MO is closed, will Cost of 10 Goods Sold be debited or credited?

Solution

As per chegg guidelines when there are more than one question then we have to answer first question but i am answering the first 2 questions.

6) Fixed cost means the cost which remains same regardless of number of goods received or sold or produced. Here the rent of restaurant remains same per year so this would be a fixed cost.

7) Calculation of revenue:

Revenue=(Fixed cost+ profit)/ CM ratio

            =(125000+75000)/0.4= 200000/0.4= $500000

Revenue is $500000