cost control ch 8
paunoh
ch08.xlsQ 1
| Chapter 8, Question 1 | ||
| Other Expenses | Variable Expense | Fixed Expense |
| Linen rental | ||
| Piano rental | ||
| Ice | ||
| Insurance | ||
| Pension plan payments | ||
| Snow shoveling fees (parking lot) | ||
| Paper products | ||
| Kitchen equipment lease (mixer) | ||
| Long-term debt payment | ||
| Real estate tax |
&L&12Chapter 8
Q 1
Q 2
| Chapter 8, Question 2 | |||||
| Mixed Expense - Sales Consultant | |||||
| For period: 1/1 to 6/30 | |||||
| Month | Sales | Fixed Fee | 1% Variable Expense | Total Expense | Cost % |
| January | $81,000 | ||||
| February | 80,000 | ||||
| March | 88,000 | ||||
| April | 92,000 | ||||
| May | 110,000 | ||||
| June | 108,000 | ||||
| 6-Month Average |
&L&12Chapter 8
Q 2
a. Tutti has decided that she cannot spend more than 2.2% of total sales for Tina’s services. Based on the six-month average cost %, can Tutti afford to hire Tina for another six months?
Answer:
b. Last year’s average sales for the first six months was $80,000. Based on the sales data, did Tina do a good job at increasing sales? Should she be hired again?
Answer:
Q 3
| Chapter 8, Question 3 | ||
| Other Expenses | Controllable | Noncontrollable |
| Real estate tax | ||
| Menu printing | ||
| Professional musicians | ||
| Interest on long-term debt | ||
| Charitable donations | ||
| Cleaning supplies | ||
| Flowers and decorations | ||
| Licenses and permits |
&L&12Chapter 8
Q 3
Q 4
| Chapter 8, Question 4 | ||||||
| 4.a. | ||||||
| Expense % and Cost Per Guest Served - Bands | ||||||
| Unit Name: Luigi's Lounge | ||||||
| Date | Band | Band Expense | Lounge Sales | Cost % | Number of Guests Served | Cost per Guest Served |
| 1/1 | Tiny and the Boys | $1,400 | $11,400 | 1,425 | ||
| 2/1 | Shakin' Bill and the Billfolds | 1,900 | 12,250 | 1,980 | ||
| 3/1 | La Noise | 2,000 | 12,000 | 2,005 | ||
| 4/1 | The Hoppers | 2,000 | 10,250 | 2,100 | ||
| 4.b. | ||||||
| Date | Band | Number of Guests Served | Cover Charge per Guest | Total Cover Charges | Lounge Sales | Total Sales |
| 1/1 | Tiny and the Boys | 1,425 | $11,400 | |||
| 2/1 | Shakin' Bill and the Billfolds | 1,980 | $12,250 | |||
| 3/1 | La Noise | 2,005 | $12,000 | |||
| 4/1 | The Hoppers | 2,100 | $10,250 |
&L&12Chapter 8
Q 4
a. Compute both band expense percent and cost per guest served. Based on the cost % of the bands, which one should Shanna select for booking?
Answer:
b. Would your answer change if you knew Shanna charged a $5.00 cover charge to enter the lounge on the nights she has a band, and the cover charge is reported separately from the lounge sales? If so, which band would you choose?
Answer:
Q 5
| Chapter 8, Question 5 | ||||||
| Six-Column Cost per Guest - Laundry Service | ||||||
| Unit Name: Marjorie's | Date: | 5/1 - 5/7 | ||||
| Laundry Service Cost | Number of Guests Served | Cost Per Guest | ||||
| Weekday | Today | To Date | Today | To Date | Today | To Date |
| 1 | $225 | 400 | ||||
| 2 | $204 | 375 | ||||
| 3 | $200 | 350 | ||||
| 4 | $240 | 425 | ||||
| 5 | $275 | 450 | ||||
| 6 | $300 | 500 | ||||
| 7 | $230 | 420 | ||||
| Total |
&L&12Chapter 8
Q 5
How is she doing at controlling her costs?
Answer:
Q 6
| Chapter 8, Question 6 | ||||
| School | Electricity Cost Last Year | Number of Kwh Used Last Year | Kwh Cost Estimate Next Year | Estimated Electricity Cost for Next Year |
| Springdale Elementary | $6,800.00 | 0.092 | ||
| Jefferson Elementary | $7,650.00 | 0.092 | ||
| Clinton Middle School | $10,200.00 | 0.092 | ||
| Tri-valley High School | $12,750.00 | 0.092 | ||
| Total | $37,400.00 | 0.092 |
&L&12Chapter 8
Q 6
Assuming no operating changes, how much more will be spent next year?
Answer:
Who are some of Josiam’s best resources for discovering ways to limit electricity usage in the kitchens?
Answer:
Q 7
| Chapter 8, Question 7 | |||||||
| Option 1 | Option 2 | ||||||
| Month | Sales Forecast | # of Square Feet | Flat Fee per Square Foot | Monthly Lease $ | Flat Fee per Month | Five % of Sales | Monthly Lease $ |
| Jan | $65,000 | ||||||
| Feb | $55,000 | ||||||
| Mar | $65,000 | ||||||
| April | $70,000 | ||||||
| May | $80,000 | ||||||
| June | $70,000 | ||||||
| July | $70,000 | ||||||
| Aug | $85,000 | ||||||
| Sept | $90,000 | ||||||
| Oct | $95,000 | ||||||
| Nov | $110,000 | ||||||
| Dec | $135,000 | ||||||
| Total |
&L&12Chapter 8
Q 7
Which lease option should Enrique choose? Why?
Answer:
Q 8
| Chapter 8, Question 8 | |||||||
| Hummingbird’s Glassware Purchase Worksheet | |||||||
| Product Durability | Price per Dozen | Number of Dozens | Total Cost | Total Number of Glasses | Per Glass Cost | Estimated Uses Per Glass | Per Use Cost |
| Highest | |||||||
| Middle | |||||||
| Lowest |
&L&12Chapter 8
Q 8
a. Based on cost per use only, which quality glass should Libbey purchase?
Answer:
b. What non-purchase price factors might influence Libbey’s choice of glassware?
Answer:
c. If you were Libbey, which product alternative would you select? Explain your answer.
Answer:
