Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / The owner of Willys Wonderful Burger Stand is concerned because the stand has been av

The owner of Willys Wonderful Burger Stand is concerned because the stand has been av

The owner of Willy's Wonderful Burger Stand is concerned because the stand has been averaging only 3,000 burger sales per month, the stand and staff can make 6,000 burgers per month. The variable cost of each burger ( buns, meat etc) is $2.50. Monthly fixed costs are ( taxes, licences, space rent and salaries) are $7,500. The owner (Willy Wonderful) believes he could sell 5,000 burgers per month if he cuts the sales price from $5.00 to $4.75 per burger. How much extra profit ( above the current level) would he generate if he decreased the sales price?

31) The owner of Fat Man's Sausage Cart is concerned because the stand has been averaging only 5,500 sausage sales per month, the stand and staff can make 7,000 sausage on a bun per month. The variable cost of each sausage ( buns, meat etc) is $3.50. Monthly fixed costs are ( taxes, licences, space rent and salaries) are $10,000. The owner (Big Bob) wants cost information about different volumes so that he can make some operating decisions.

Required: Fill in the following chart to provide Bob with the information he wants.

Monthly sausage sales3,0005,0007,000

Total fixed Costs$__________$__________$__________

Total variable cost$__________$__________$__________

Total costs$__________$__________$__________

Fixed cost per sausage$__________$__________$__________

Variable cost per sausage$__________$__________$__________

Average cost per sausage$__________$__________$__________

Sales price per sausage$7.50$7.50$7.50

Average price per  sausage$__________$__________$__________

Dec 07 2019 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions