Eva is thinking of opening a small coffee shop in Manchester. She has looked at premises near the train station but the rents are very expensive. There is also a lot of competition in the town centre from big coffee shop chains such as Costa Coffee and Starbucks. She is therefore thinking of starting up a franchise operation. With a minimum investment of £5000, she could start a Coffee-Bike franchise. This is a mobile coffee franchise where coffee is freshly made and sold from her adapted bicycle. The franchisor would provide Eva with her own bike, equipment and all the necessary training.

Analyse the benefits to Eva of operating as a franchise to set up a mobile coffee shop."

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.