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ACC202-Ch7-Exercise-6

ACC202-Ch7-Exercise-6 - Name Date Instructor Course...

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FileName: 5dcdf1a264fbf1ea134c27220b135353361571ef.xls, Tab: Exercise E7-6, Page 1 of 2, 06/07/2009, 07:18:46 Name: Date: Instructor: Course: Exercise E7-6 Incremental Analysis and Opportunity Costs Required: The incremental profit is as follows: Revenue Amount Less cost of unprepared food and beverage Amount Formula Lost revenue Amount Cost savings for food and beverage Amount Loss profit Formula Net Formula Narrative answer: Narrative answer: Managerial Accounting , Second Edition by James Jiambalvo Solving Managerial Accounting Problems Using Microsoft Excel for Windows Templates by Rex A Schildhouse Sawyer's Seafood Restaurant has been approached by Wellsworth Real Estate, which wants to hold an employee recognition dinner next month. Katie Miller, a manager of the restaurant agreed to a charge of $75 per person, for food, wine, and dessert, for 120 people. She estimates that the cost of unprepared food will be $20 per person and beverages will be $10 per person.
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