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Pantino’s Pizza & Pasta

Autor:   •  February 22, 2018  •  Case Study  •  2,241 Words (9 Pages)  •  402 Views

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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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