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Author Question: The owner of Fat Man's Sausage Cart is concerned because the stand has been averaging only 5,500 ... (Read 22 times)

kaid0807

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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, licenses, 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$7.50
Average profit per sausage$________$________$________


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Marked as best answer by kaid0807 on Jan 4, 2020

jointhecircus

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kaid0807

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Reply 2 on: Jan 4, 2020
YES! Correct, THANKS for helping me on my review


covalentbond

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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