This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Dolph and Evan started the DE Restaurant in 2015. They rented a building, bought equipment, and ... (Read 56 times)

lbcchick

  • Hero Member
  • *****
  • Posts: 550
on: Mar 6, 2021
Dolph and Evan started the DE Restaurant in 2015. They rented a building, bought equipment, and hired two employees to work full time at a fixed monthly salary. Utilities and other operating charges remain fairly constant during each month.

During the past two years, the business has grown with average sales increasing 1% a month. This situation pleases both Dolph and Evan, but they do not understand how sales can grow by 1% a month while profits are increasing at an even faster pace. They are afraid that one day they will wake up to increasing sales but decreasing profits.

Required:
Explain why the profits have increased at a faster rate than sales. Use the terms variable costs and fixed costs in your response.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by lbcchick on Mar 6, 2021

lauravaras

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 45% of students answer this correctly


lbcchick

  • Member
  • Posts: 550
Reply 2 on: Mar 6, 2021
:D TYSM

bblaney

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Species of reef-building corals may be able to adapt to warming waters by relying on algae Species of reef-building corals may be able to adapt to warming waters by relying on algae
The first step in field recovery involves surveying the site, sometimes with special equipment. The first step in field recovery involves surveying the site, sometimes with special equipment.
How it all started, from the roots. How it all started, from the roots.
Teresa Hubbard and Alexander Birchler, Detached Building. Teresa Hubbard and Alexander Birchler, Detached Building.
Ludwig Mies van der Rohe and Philip Johnson, Seagram Building, New York City. Ludwig Mies van der Rohe and Philip Johnson, Seagram Building, New York City.
Portable tabletop equipment that provides support for recipients receiving massage. Portable tabletop equipment that provides support for recipients receiving massage.
Video: Hormones and the menstrual cycle Animation

For a complete list of videos, visit our video library