Author Question: The owner of Willy's Wonderful Burger Stand is concerned because the stand has been averaging only ... (Read 74 times)

mckennatimberlake · **on:** Jan 4, 2020

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, licenses, space rent and salaries) are $7,500. The owner (Willy Wonderful) wants cost information about different volumes so that he can make some operating decisions.

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

Monthly burger sales

2,500

3,000

5,000

Total fixed Costs

$________

Total variable cost

$________

Total costs

$________

Fixed cost per burger

$________

Variable cost per burger

$________

Average cost per burger

$________

Sales price per burger

$5.00

Average profit per burger

$________

IAPPLET · **Reply #1 on:** Jan 4, 2020

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