Ch_4a_Hot_dog_operation_-A

Ch_4a_Hot_dog_operation_-A - Operating Data: Monthly...

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Operating Data: 20 operating days per month 1,000 hot dogs sold per month Selling Price = $2.50 per dog $2,500 $1,250 Cost of hot dog cart = $6,000 $100 Life = 5 years, SL depreciation, no salvage value One tank of fuel required per month - $25 $25 Condiments are disposed of each day, cost = $5 per day $100 Licence Fee = $300 per year $25 Wages (selling expense) = $25 per day + $0.25 per dog $500 $250 Product / Period Monthly Revenues & Expenses Fixed / Variable
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Product Costs 20 operating days per month Direct Materials (1000 x $1.25) $1,250 1,000 hot dogs sold per month Depreciation ($6,000 / 60 months) $100 Selling Price = $2.50 per dog Fuel - one tank $25 Condiments ($5 x 20 days) $100 Cost of hot dog cart = $6,000 Life = 5 years, SL depreciation, no salvage value Total Product Costs $1,475 One tank of fuel required per month - $25 Condiments are disposed of each day, cost = $5 per day Period Costs
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This note was uploaded on 10/20/2011 for the course ACC 222 taught by Professor Brewer during the Spring '08 term at Miami University.

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Ch_4a_Hot_dog_operation_-A - Operating Data: Monthly...

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