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Business, 11.02.2021 17:30 genyjoannerubiera

Sophia's Restaurant served 5,100 meals last quarter. Sophia recorded the following costs with those meals. Variable costs: Ingredients used $ 14,100 Direct labor 10,700 Indirect materials and supplies 5,500 Utilities 1,830 Fixed costs: Managers' salaries 22,500 Rent 18,500 Depreciation on equipment (straight-line, time basis) 2,500 Other costs 3,200 Required: Suppose that Sophia expects to serve 20 percent more meals in the next quarter. Unit variable costs are expected to remain unchanged. However, Sophia knows that if the restaurant serves over 5,610 meals in a quarter, she must hire an additional manager (part-time) at a cost of $6,750 for the quarter. Other fixed costs are expected to increase by 10 percent. Calculate the unit cost and the total cost if 6,120 meals are served next quarter.

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