1 A restaurant prepares 20000 pizza slices and sells them at

1) A restaurant prepares 200.00 pizza slices and sells them at a rate of $13.00/slice. Expenses for the restaurant include raw material for pizza at $6.00 per slice, $123.00 as monthly rental and $30.00 monthly as insurance. Restaurant is open only for 25 days in a month. Today there was a party at nearby office so the demand for pizza went up to 230.00 slices. Due to lack of availability vendor could not fulfill the demand and analyzed a lost sale as $5.00 per item. How much profit could the restaurant earn today?

4)For a table manufacturing company, selling price for a table is $50.00 per Unit, Variable cost is $15.00 per Unit, labor charge is $12.77 per Unit, rent is $564.00 per month and transportation is $10 per 10 tables. If 50 tables are sold in a month how much is the fixed cost for that month?

Solution

1.

Sale price for 200 slices. : 2600

Raw material expenses. : 1200

Rent (123/25). : 4.92

Insurance (50/25). : 2.00

Actual profit for the day. : 1393.08

Extra which it could have earned : 150

The profit ir could have earned is 1543.08

4. The fixed cost for this month is rent of 564.00

All other costs are variable in nature