Pantino’s Pizza & Pasta
Autor: irenetao • February 22, 2018 • Case Study • 2,241 Words (9 Pages) • 467 Views
Pantino’s Pizza & Pasta - Case Study[pic 1]
Pantino’s Pizza & Pasta has the following information available regarding costs at various levels of monthly sales in the second quarter of 2011.
April May June
Monthly sales in covers 25,000 37,000 45,000
Cost of Food Sold $50,000 $74,000 $90,000
Salaries, Wages, and Benefits 60,000 62,400 64,000
Telephone 25,500 32,700 37,500
Rent 4,800 4,800 4,800
Depreciation (kitchen equipment) 1,200 1,200 1,200
Marketing 17,200 22,000 25,200
Utilities 2,000 2,600 3,000
Repairs and Maintenance 1,200 1,680 2,000
Administrative and General 5,200 5,200 5,200
Develop a schedule identifying the amount of each cost that is fixed per month or variable per unit using the High / Low Method. Total the amounts under each category to develop an equation for total monthly costs.
Item | Fixed Costs | Variable Cost/Unit | |
Cost of Food Sold | 0 | 2.00 | |
Salaries, Wages, and Benefits | 55,000 | .2 | |
Telephone | 10,500 | .6 | |
Rent | 4,800 | 0 | |
Depreciation (kitchen equipment) | 1,200 | 0 | |
Marketing | 7,200 | .4 | |
Utilities | 750 | .05 | |
Repairs and Maintenance | 200 | .04 | |
Administrative and General | 5,200 | 0 | |
Total: | 84,850 | 3.29 |
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