Kung Thang Assignment 1

Problem 1
1 Fixed weekly expense of acoffee 1200
Variable cost per cup of coffee 0.22
Cups of coffee served in a week
2000 2100 2200
Fixed Cost 1200 1200 1200
Variable cost 440 462 484
Total cost 1640 1662 1684
Average cost per cup of coffee served 0.82 0.79 0.77

2 Decrease because with fixed cost as activtiy goes up, cost per unit goes down

Problem 2
Month Guest - days Expense
March 4000 7500
April 6500 8250
May 8000 10500
June 10500 12000
July 12000 13500
August 9000 10750
September 7500 9750

1 Month Guest-day Costs

Hight activtiy level 12000 13500
Low activtiy level 4000 7500
change 8000 6000

Variable cost per guest-day 0.75

Fixed cost per month 4500

X 11000
2 Variable cost 8250
Fixed cost 4500
Total 12750

3 4
Chart Title
16000
13500
14000 12000
12000 10500 10750
9750
10000 8250
xpense

7500
8000
6000
 Chart Title
16000
13500
14000 12000
12000 10500 10750
9750
10000 8250

Expense
7500
8000
6000
4000
2000
0
3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 13000
Guest days

Problem 3 Cost 2450

Sells 3125
Sold and delivered 40

1 Traditional Format 2
Sales 125000
Cost of goods sold 98000
Gross margin 27000

Selling expenses
Advertising 700
Sales salaries and commisions 10950
Delivery of pianos to customers 1200
Utilities 350
Deprectiation 800
Total 14000

Administrative
Executive salaries 2500
Insurance 400
Clerical 1800
Depreciation of office equipment 300
Total 5000

Net operating income 8000

 5
Chart Title
16000
14000
12000 f(x) = 0.772844827586207 x + 3973.06034482759
R² = 0.962299149904215
10000
is Title

8000 Column D
6000 Linear (Column D)
 Chart Title
16000
14000
12000 f(x) = 0.772844827586207 x + 3973.06034482759
R² = 0.962299149904215
10000
Axis Title

8000 Column D
6000 Linear (Column D)
4000
2000
0
2000 4000 6000 8000 10000 12000 14000
Axis Title

Variable cost per guest day 0.77

Fixed cost per month 3973

Contribution Format
Sales 125000 125000
Variable expenses:
Cost of goods sold 98000
Sales commisions 10000
Delivery of pianos to customers 1200
Clerical 800
Total 110000
Contribution Margin 15000

Fixed expense 700

Advertising 950
Sales Salaries 350
Utilities 800
Deprectiation 2500
Executive salaries 400
Insurance 1000
Clerical 300
Depreciation of office equipment 7000
Total
Net operating income 8000
X 11000

Variable cost 8470

Fixed cost 3973
Total 12443