Suppose seafood houseseafood house restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. the chef estimates that variable costs of making each loaf include $ 0.54$0.54 of ingredients, $ 0.24$0.24 of variable overhead (electricity to run the oven), and $ 0.74$0.74 of direct labor for kneading and forming the loaves. allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, seafood houseseafood house assigns $ 1.00$1.00 of fixed overhead per loaf. none of the fixed costs are avoidable. the local bakery would charge $ 1.80$1.80 per loaf.1. what is the absorption cost of making the bread in-house? what is the variable cost per loaf? 2. should olive yard bake the bread n-house or buy from the local bakery? why? 3. in addition to the financial analysis, what else should olive yard consider when making this decision?

Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.70 electricity $ 1,400 $ 0.07 maintenance $ 0.15 wages and salaries $ 4,900 $ 0.30 depreciation $ 8,300 rent $ 1,900 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,400 per month plus $0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of $6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue $ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income $ 25,030 required: calculate the company's revenue and spending variances for august.

Turtle corporation produces and sells a single product. data concerning that product appear below: per unit percent of sales selling price $ 150 100 % variable expenses 75 50 % contribution margin $ 75 50 % the company is currently selling 5,600 units per month. fixed expenses are $194,000 per month. the marketing manager believes that a $5,300 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. what should be the overall effect on the company's monthly net operating income of this change?

Richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.